The Pi Network price has crashed this week, continuing a downtrend that started on May 12 when it peaked at $1.6690. It plunged to a low of $0.2400, its lowest point since September 22, down by 85% from its highest point this year. So, what’s next for the coin?
Why the Pi Network price has crashed
There are several reasons why the Pi Coin price has plunged this year, bringing its market capitalization to $1.9 billion from the all-time high of nearly $17 billion.
First, the Pi Network price has plunged because of the ongoing token unlocks, which will continue in the coming years.
Data compiled by PiScan shows that over 120 million coins will be unlocked this month. Another 1.24 billion tokens will be unlocked in the next 12 months, with the monthly average being 28.6 million coins.
Token unlocks are bearish for a cryptocurrency because they boost the circulating supply. Worse for Pi Network, this is happening at a time when demand for the coin remains muted.
Data compiled by CoinMarketCap shows that the volume jumped to $50 million in the last 24 hours, a small amount for a coin valued at over $1.9 billion. The lower volume means that its liquidity remains low.
One reason why Pi’s liquidity has plunged over time is that it is only available in a handful of exchanges like OKX, MEXC, Bitget, and Gate. It has not been listed by popular tier-1 exchanges like Coinbase, Bybit, and Upbit. The lack of an exchange listing also explains why it has plunged in the past few months.
Further, the token has plummeted as interest among pioneers waned after the mainnet launch in February this year. Before the launch, most pioneers were mining it hoping to cash out in a big way once it went public.
Pi Network price surged immediately after the mainnet launch and then plunged by over 90%. Most pioneers who held the coins sold them as they dropped and avoided buying the dip.
Read more: Pi Network price prediction 2025 – 2030 after the mainnet launch
Pi has become a ghost chain
Further, Pi has become a ghost chain, which is defined as a network without any supportive ecosystem of applications. Think of a chain like Ethereum without apps like Aave and Uniswap.
One reason why Pi Network has become a ghost chain is that top developers like Aave and Uniswap have avoided it. Also, apps built on the ecosystem are only available on the Pi Browser, creating a long layer that many people would want to avoid.
Pi Network’s developers have tried to boost the ecosystem growth, a process that has not achieved substantial results. For example, they launched a $100 million fund to invest in startups, and most recently, they launched the Pi AI Studio.
Finally, it has plunged because of its centralization, with the Pi Network Foundation controlling billions of tokens in hundreds of wallets.
What can boost the Pi Coin price?
The Pi Network price can bounce back if the developers made some minor adjustments. First, it would soar if they announced a major token burn to dramatically reduce the number of tokens in circulation and those that will ever be mined.
A token burn announcement can boost a price as we experienced with OKB, which jumped by triple digits after announcing a major burn. The developers incinerated over 62 million coins and put a circulating limit to just 21 million coins. BNB price has also jumped to over $1000 after the team launched a major token burn procedure.
The other potential catalyst would be to make it a fully decentralized network, a move that would make exchanges more comfortable listing it. As things stand, many exchanges are afraid of listing it because of the control that the company has.
Also, the coin would do well if they made it a more friendly chain for developers to build decentralized products.
READ MORE: Pi Network price prediction: Here’s why the Pi token has crashed
The post Pi Network Price Prediction After the $17 billion wipeout appeared first on Invezz
