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The cryptocurrency landscape is ever-evolving, and Pi Network is currently experiencing a challenging phase as its token value edges closer to an all-time low. The surge in unlocked tokens is exerting significant pressure on its market performance, leading to a decline in its price.
Declining Prices Amidst Rising Supply
Recent data indicates that Pi Network’s token (PI) is trading at approximately $0.6722, nearing its lowest recorded price of $0.6152 from February 20. A key factor influencing this downturn is the scheduled unlocking of over 126.6 million PI tokens this month, which represents nearly 1.87% of its current circulating supply.
Alex Obchakevich, the founder of Obchakevich Research, has pointed to the continuous token unlocks as a primary reason for the price dip. He emphasizes that the supply outpacing demand is inevitably affecting the token’s market value.
To date, the Pi Network has unlocked approximately 4.9 billion PI tokens, with an additional 1.54 billion set to be released over the next 12 months. On average, about 133 million PI tokens are unlocked each month, contributing to market volatility and price fluctuations.
The Aftermath of Pi Network’s Mainnet Launch
The current downturn follows the project’s mainnet launch earlier this year. Initially, Pi Network operated with trading restrictions, preventing listings on crypto exchanges. However, after its listing on platforms like Bitget, OKX, and MEXC, the token has faced mounting selling pressure due to the influx of newly unlocked coins.
Future Prospects for Pi Network
Despite these challenges, Pi Network still holds growth potential. Obchakevich suggests that the project should prioritize development to enhance user engagement and adoption. He believes that with the right strategy, Pi Network could become a strong competitor among top blockchain projects.
“The project has the potential to compete with the top 10 in the crypto space,” he stated. “However, it must first navigate these turbulent times and offer compelling features to attract users.”
Understanding Pi Network
Pi Network was introduced in 2019 as a mobile-first blockchain initiative designed to allow users to mine tokens via a simple daily check-in. Developed by Stanford University graduates, the platform utilizes a referral-based model where users can earn additional tokens by inviting others to join.
While Pi Network has garnered a dedicated user base, skepticism remains. In February, ByBit CEO Ben Zhou publicly criticized the project, labeling it a potential scam and affirming that his exchange would not list its token.
The Road Ahead
Pi Network is at a crucial juncture. With an increasing token supply and market skepticism, the project must focus on strengthening its ecosystem to sustain investor interest. Whether it can rise to the challenge and establish itself among the leading blockchain projects remains to be seen.