Pi Network Faces Significant Price Decline Amid Token Unlock Concerns
Pi Network (PI) has seen its price plummet, hitting a low of $0.7012. This is its lowest point sence February 25.The drop marks a 76% decrease from its peak.The market cap has shrunk from nearly $20 billion to $4.76 billion.
Investors are worried about the upcoming token unlock. This event could flood the market with more coins, causing further price drops. PiScan data shows that over 124 million Pi coins will be released this month. The number will rise to 233 million in July. In the next year, over 1.53 billion tokens will enter circulation, pushing the total supply to 8.2 billion. The coin’s value has fallen sharply, wiping out $14 billion. The main reason is the massive token unlock. These unlocks will add to the existing supply, making the coin less valuable. The network is on track to become one of the most inflationary cryptos. The total supply is capped at 100 billion, with 6.7 billion already in circulation. This influx of new tokens is a major concern for traders.
Some cryptos use a burning method to counteract this issue. This involves sending tokens to an address where they can’t be used, effectively reducing the supply. It’s unclear if Pi will adopt such a strategy.
Another factor affecting Pi’s price is the lack of major exchange listings. Since its mainnet launch in February, no top-tier exchanges have added Pi.This limits its accessibility and trading volume.
Technically, Pi’s price chart shows a continued downtrend. It’s below the 50-period moving average, indicating bearish control. Though, a falling wedge pattern suggests a potential bullish reversal. If a major exchange lists Pi, it could trigger a price rebound, possibly reaching $1.
For more insights, keep an eye on Pi’s co-founder, nicolas Kokkalis. He may address these issues during the project’s first X Space event, where he’s expected to share the roadmap and upcoming features.
