Karla Barker 
Pyth Network’s PYTH token fell about 12% over the past day and touched a new local low, according to the article’s data. The move came after the reported Binance hack incident, which was said to cause roughly $6.3 billion in losses. Still, the drop also lines up with one of the protocol’s weakest months.
Value secured falls by $179M
The selloff showed up in on-chain data. Total Value Secured, or TVS, declined from $3.164 billion to $2.985 billion. That is a $179 million outflow in 24 hours as of writing. TVS tracks the assets the protocol manages, including bridged and native tokens, so the decline suggests users are pulling back from active use.
Earnings also fell sharply. Data from DeFiLlama put gross profit after incentives at about $1,310, the lowest monthly level recorded. That compares with $434,640 in September. When earnings drop that far, it points to weaker protocol utility, or at least fewer users willing to engage right now.
Short sellers dominate perpetuals
Perpetual traders have leaned into the downside. The funding rate for PYTH fell to -0.0172, an extreme negative reading. The article said traders had positioned roughly $36.77 million in the perpetual market toward shorting the asset. Whale activity has also increased: the Whale-Retail Delta rose to 0.301 over the past day. That suggests large traders are still adding to positioning, and selling pressure remains heavy. Negative funding can sometimes reverse quickly, but for now the derivatives market is not signaling relief.
Spot traders buy the dip
Spot traders are moving the other way. CoinGlass data showed Spot Netflow at -$1.56 million, meaning more capital left exchanges than entered. That can point to accumulation, perhaps because some investors see the recent drop as a discount. The signal is small compared with the short positioning in perpetuals, though, so it does not erase the broader caution.
The recovery question is still open. Spot outflows hint that some buyers are stepping in. But weak earnings, lower TVS, and crowded short positions keep the near-term picture tilted toward caution. PYTH likely needs stronger usage and a shift in derivatives positioning before a sustained rebound looks plausible, I think.