Cryptocurrency Pi Network (PI) Breaks Record, Yet It Involves an Unexpected Development
In a surprising turn of events, the Pi Network's native token, PI, has experienced a 7% increase in valuation over the past 24 hours, marking a resurgence in its price. However, this positive movement may be short-lived, as the combined effects of large scheduled token unlocks and surging exchange balances pose significant downward price pressure risks.
The upcoming token unlocks, totaling over 620 million PI tokens by December 2025, include monthly releases of 139 million in August, 116 million in September, and gradually decreasing amounts up to 170 million in December. Previous unlocks, such as the 337 million tokens released in mid-July, have resulted in a sharp 25% price drop, demonstrating the impact of these supply injections on the token's value.
Simultaneously, the total number of PI tokens stored on cryptocurrency exchanges has reached a new all-time high of over 400 million, indicating increased immediate selling pressure. This accumulation often precedes increased selling as users transfer tokens to exchanges to cash out. For instance, a net inflow of over 700,000 PI tokens to exchanges was noted just before a 10.8 million token unlock event, signaling growing sell-side pressure.
The continuous injection of unlocked tokens combined with rising exchange balances has compounded liquidity risks, limiting sustainable upside price momentum. The large unlocked supply leads to an oversupply scenario, making price rebounds difficult amidst selling pressure.
The PI token price has retraced significantly from its all-time high, is currently declining, and testing crucial support levels near $0.40. Analysts warn of potential further losses as selling pressure mounts ahead of unlock events. The market sentiment and technical outlook are bearish, with the network's struggle with decentralization, slow user KYC and migration processes, and limited external interest potentially weakening demand further.
Despite these challenges, the Pi Network's community remains active, with more than 7,600 chatbot applications and 14,100 custom apps having been created and published by pioneers since the launch of Pi App Studio. However, unless the network can boost genuine demand, decentralization, and ecosystem use cases, the PI token price is likely to face continued volatility and downside risk throughout 2025.
[1] CryptoSlate, Pi Network: What is it and should you invest in it? https://cryptoslate.com/pi-network-what-is-it-and-should-you-invest-in-it/ [2] CoinGecko, Pi (PI) Price Statistics https://www.coingecko.com/en/coins/pi/market_chart [3] Coinpedia, PI Price Prediction: Will Pi Network’s PI Token Reach $1 in 2025? https://coinpedia.org/price-prediction/pi-price-prediction/ [4] CoinQuora, Pi Network’s PI Token Price Plunges 25% After Massive Token Unlock https://coinquora.com/pi-networks-pi-token-price-plunges-25-after-massive-token-unlock/
In light of the upcoming token unlocks and increasing exchange balances, there could be a significant decrease in the value of the Pi Network's native token, PI, as these factors may exert downward pressure on the price. Amidst growing concerns about the token's supply and market sentiment, some analysts predict that the PI token price is likely to face continued volatility and downside risk throughout 2025, potentially causing further losses for investors actively participating in the crypto finance market.
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