The Pyth Project team explains the reason for the rapid decline in the price of Bitcoin on September 20
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Answer The Pyth Project team explains the reason for the rapid decline in the price of Bitcoin on September 20
September continues to prove to be the month of Bitcoin price volatility and volatility.
On September 20, the price of Bitcoin dropped by about $5,400 quickly and suddenly, here is the explanation and explanation of the “Pyth Network” project team of what happened.
Before addressing the interpretation, we recall that the “Pyth” project is a blockchain-based oracle network Solana that aims to connect blockchain networks with real-world data, which is much needed in the cryptocurrency field to provide convenience, accuracy and interoperability.
On September 20, between 12:21 and 12:23 UTC, the bitcoin price experienced several sharp declines, bringing the price below $40,000, and the value of the drop reached an estimated $5,402.Read:17-year-old artist sells $138,000 worth of fake NFTs and disappears!
This causes problems for apps that depend on the Pyth price feed.
The Pyth project team explained:
The rapid decline allowed liquidations to occur although the stated price was highly uncertain.
note The developer team at Chainlink, a Pyth competitor, is a veteran of the crash’s price feed, criticizing Pyth for inaccuracies in their oracle data.
While one of the main points of the Pyth project is “data accuracy”, it clearly fails.
In a detailed blog post, the Pyth Network team explained the reasons for Bitcoin flash, while making two main points:
- Various parties posted a price of close to 40 thousand dollars for the BTC/USD trading pair as they had problems dealing with decimal numbers.
- The network’s aggregation logic has heightened the importance of the contributions of these publishers.
To deal with these problems, developers have taken certain steps, making changes that reduce the likelihood that publishers will provide incorrect prices due to software bugs.
From now on, the developers are working on modifying the aggregation logic to weigh prices that cover a large range of values.Read:Elon Musk invites major holders of the digital currency “Dogecoin” to sell it!
Last but not least, developers also create improved documentation, data, and best practices for the protocols you desire.
In conclusion, it can be said that the inaccurate data provided by Pyth has indirectly contributed to the decline in the price of bitcoin by offering an incorrect instantaneous price of bitcoin and valuing the bitcoin at a lower price, which contributed to spreading fear, panic and mass selling.
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