The price of Pi Network has plummeted in recent weeks, undoing some of the progress made following its mainnet launch in February.
Currently, Pi Network (PI) is priced at $1.13, having fallen from an all-time high of $3, which has reduced its market capitalization from nearly $20 billion to $7.73 billion. This piece examines the four key factors that might propel the Pi coin to $10 over the long term.
Crypto Market Surge
A surge in the crypto market is the primary factor that could elevate the price of Pi coin to $10. Such a surge would likely occur if Bitcoin recovers from its present downturn and climbs past its previous peaks.
Historically, altcoins tend to perform strongly when Bitcoin is advancing. This momentum is typically driven by rising investor demand and an increase in the crypto fear and greed index.
Factors that could spark the next crypto market rally include a lenient Federal Reserve, enhanced regulatory transparency, and more approvals for ETFs.
Pi Network Burn Mechanism
Another possible catalyst for Pi Network’s price increases is its token burn mechanism. A token burn occurs when tokens are transferred to a wallet that cannot be accessed, decreasing supply and helping to manage inflation.
These token burns might counteract the ongoing release of tokens. This month, over 188 million Pi coins are set to be unlocked, with an additional 1.6 billion anticipated over the next year. Future unlocks are expected as only 6.84 billion are currently in circulation out of a total supply of 100 billion.
Pi Network has several strategies for burning tokens, including removing tokens from users who haven’t migrated them to the mainnet, eliminating fees generated within its ecosystem, and the Pi Foundation can optionally retire some of its tokens.
Potential Pi Coin ETF Approval
Another factor that could drive Pi Network’s price up to $10 is the application and approval of a spot ETF by the Securities and Exchange Commission. Pi satisfies most of the criteria necessary for such approval.
It is larger than several cryptocurrencies that have already applied for ETFs, such as Sui (SUI), Litecoin (LTC), and Polkadot (DOT). Additionally, it boasts liquidity exceeding that of some of these coins, with daily trading volumes often surpassing $1 billion.
As a proof-of-work cryptocurrency, Pi Network utilizes technology akin to that of Bitcoin (BTC) and Ethereum.
Exchange Listings Would Favor Pi Network Price
A significant catalyst for Pi Network’s growth is the potential for listings on major exchanges like Coinbase, Binance, Upbit, and Kraken. It would also gain from being listed on decentralized exchanges such as Uniswap and Raydium through a wrapped version of the token.
A listing on Binance would introduce it to over 200 million users globally. Similarly, being listed on Coinbase and Kraken would expand its availability among American consumers, while Upbit would provide access to traders in South Korea.