The price of the social cryptocurrency initiative Pi Network is nearing its all-time lows as an increasing number of coins become accessible.
Current data indicates that Pi Network (PI) is trading at $0.6722, which is just above its all-time low of $0.6152 recorded on February 20. This price fluctuation coincides with the unlocking of over 126.6 million PI tokens this month, representing nearly 1.87% of the cryptocurrency’s current circulating supply.
Chart showing monthly PI unlocks.
According to Alex Obchakevich from Obchakevich Research, the price decline is linked to the ongoing token unlocks. He noted that such an occurrence was “inevitable” and commented:
“The monthly unlocks surpass demand, significantly impacting the token’s value.”
Related: The truth about Pi coin: Could it rival Bitcoin?
To date, the network has unlocked 4.9 billion PI, with another 1.54 billion coins set to be released over the next year. On average, Pi Network has unlocked around 133 million PI each month.
This recent price drop follows February’s all-time lows after the Pi Network mainnet was launched. Until that launch, the project faced trading restrictions that hindered its availability on any platform. Since then, it has been listed on exchanges such as Bitget, OKX, and MEXC.
Potential Ahead
Nevertheless, Obchakevich acknowledged the promise of the Pi Network. He emphasized the need for the project to “concentrate on development to enhance usage and interest.” Regarding its growth prospects, he added:
“The project definitely possesses the ability to compete with the top ten projects in the future. However, they must navigate this volatile market, as competitors are currently providing more appealing conditions and offerings.”
Related: Implications of Pi Network’s mainnet launch for early adopters
Overview of Pi Network
Pi Network is a mobile-centric blockchain initiative allowing users to earn its native token, Pi coin, via a daily check-in within the app. The network made its debut in 2019 and is spearheaded by a team of Stanford University alumni.
The project operates on a referral model where users invite others to join in exchange for token rewards. In late February, the CEO of the cryptocurrency exchange ByBit questioned the project’s legitimacy, labeling it a scam. He stated:
“Yes, I still believe you are a scam, and no, Bybit will not list a scam.”
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