Pi Network Faces Important Price Decline Amid Token Unlock Concerns
Pi Network’s price has been falling steadily. Buyers are hesitant, and worries about the upcoming token unlock are mounting. The PI token hit a low of $0.7012, its lowest since February 25. This drop means it’s lost 76% of its value from its peak. the market value has shrunk from nearly $20 billion to $4.76 billion.
Traders are worried about the upcoming token unlock. This event could flood the market with more coins. PiScan data shows over 124 million PI tokens will unlock this month. The situation is expected to worsen as more tokens will unlock in the coming months. By July, the number could reach 233 million. In the next year, over 1.53 billion tokens will enter circulation, pushing the total supply to 8.2 billion. This flood of new tokens could further depress prices. The network is now one of the most inflationary cryptos. The total supply is capped at 100 billion, but 6.7 billion are already in circulation. This influx could lead to more selling pressure.
some cryptos use a “burning” method to counteract this. This involves sending tokens to reduce supply.
It’s unclear whether Pi has plans to implement such a burning mechanism. One option could be to incinerate all tokens not moved to the mainnet by the June deadline. Another possibility is to burn ecosystem fees. Perhaps Nicolas Kokkalis, Pi’s co-founder, will address these concerns during the project’s first X Space. He is expected to share the roadmap and outline upcoming features. Pi Network price has also struggled due to a lack of exchange listings. No major tier-1 exchange has listed the token as its mainnet launch in February.
On the positive side, Pi Network has formed a falling wedge pattern, a popular bullish reversal signal. With the two trend lines nearing convergence, it could rebound in April and potentially retest the psychological level at $1. All Pi needs is a single catalyst, such as a major exchange listing.
