Pi Coin’s Price Under Pressure
Pi Network’s native cryptocurrency, Pi Coin (PI), has recently experienced significant price pressure, moving sideways and ultimately crashing more than 15% over the past month. This downturn has brought Pi’s price to its April lows of $0.40. The selling pressure intensified following the Pi2Day event in late June and was exacerbated by user reports of failed token transactions within the Pi Wallet. Such functional issues can severely erode user confidence and directly impact a cryptocurrency’s market performance.
The combination of a sustained downtrend and reported usability problems paints a challenging picture for the Pi Network and its community. Addressing these operational concerns is crucial for stabilising the token’s value and restoring user trust, as consistent functionality and reliability are fundamental to any cryptocurrency’s long-term viability and widespread adoption. The market’s reaction suggests that despite community enthusiasm, tangible utility and seamless user experience are paramount for sustained growth.
Rising Pi Supply on Centralised Exchanges
A significant factor contributing to Pi Coin’s recent struggles is the notable increase in its supply on centralised exchanges (CEXs). Earlier in July, reports indicated that the amount of Pi on exchanges had reached a record high of 370 million. By the end of July, this figure had surged further to over 405 million PI, marking an increase of nearly 10% in just one month, according to data from Piscan. This influx of tokens onto exchanges typically suggests that more holders are preparing to sell or that the market is anticipating increased trading activity.
A large exchange balance, especially without a corresponding rise in demand and trading volume, can exert considerable downward pressure on price. Data from CoinMarketCap shows that Pi’s 24-hour trading volume remained below $100 million for most of July, a stark contrast to its daily volume in May, which ranged from $500 million to over $2 billion. This disparity between increasing supply on exchanges and stagnant demand indicates a strong bearish divergence, contributing to Pi’s consistent downward pressure throughout the month.
Core Problems: Lack of dApps and Locked Tokens
Kim H. Wong, a Pi advocate, has identified two major issues that hinder the growth and practical utility of the Pi Network. Firstly, the lack of decentralised applications (dApps) within the Pi Network ecosystem restricts the practical use of Pi Coins, making them less appealing for everyday transactions and limiting their integration into a functional economy. Secondly, most users’ Pi coins become locked upon transfer to their wallets, reducing their flexibility and utility.
This restriction limits liquidity and discourages active participation in a decentralised economy. Wong emphasised the urgency for solutions to these core problems, stating that without resolving these issues, the Pi Network will struggle to thrive and demands immediate attention to dApp development and improved token fluidity.
Analyst Perspectives on Utility
The sentiment regarding Pi Network’s utility is echoed by other prominent figures in the crypto space. Ray Youssef, CEO of NoOnes and former Paxful co-founder, shares Kim H. Wong’s view on the critical need for real user utility. Youssef believes that developers creating applications with genuine practical value will be the primary drivers of Pi Coin’s long-term value. However, he notes that while Pi Network has been successful in attracting a massive user base for mining the token, it has largely failed to provide meaningful utility for these users. “Pi succeeded on the retail side, millions mining the token.
But developers? That stable is thin,” Youssef told BeInCrypto. This perspective underscores a fundamental disconnect: a large user base without compelling use cases can lead to a lack of organic demand for the token. Experts suggest that ecosystem utility is the absolute key to Pi’s long-term value. Without it, even a potential listing on a major exchange like Binance could paradoxically become a “massive sell-off disaster,” as users might rush to offload tokens lacking practical application.
The Impact of Token Unlocks
The issue of Pi Coin’s circulating supply is further complicated by its ongoing schedule of token unlocks. While token unlocks inherently increase the circulating supply of a cryptocurrency, which can exert downward pressure on price, there is a glimmer of positive news for Pi Network in August. The total volume of Pi token unlocks for August is projected to drop to 160 million, a significant decrease from the 280 million unlocks observed in July. This reduction in the monthly unlock volume could potentially alleviate some of the selling pressure that has been weighing on the Pi Coin price.
However, it is crucial to remember that the fundamental principle remains: increasing supply, if not met by commensurate demand, typically leads to a price drop. Therefore, while a smaller unlock volume is more favourable than a larger one, the overall impact of unlocks on price remains a critical factor for Pi Network’s short-term performance. The market will closely watch how this reduced supply influx interacts with the existing demand dynamics.
Contrasting with Other Emerging Projects
Pi Network’s current struggles, including price pressure and utility challenges, contrast with the momentum of emerging crypto projects like BTC Hyper. Bitcoin Hyper is a Layer 2 token designed to merge meme coins with smart contract functionality on the Bitcoin network. Built using the Solana Virtual Machine, it aims to address Bitcoin’s scalability and programmability limitations by integrating smart contracts into the BTC ecosystem.
By enabling faster transactions and lower gas fees, Bitcoin Hyper transforms Bitcoin’s use case from a passive store of value into a dynamic platform capable of supporting staking, swapping, decentralised applications, payments, and cross-chain interoperability. This innovative approach positions it as one of the most compelling crypto presales, highlighting the competitive landscape Pi Network operates in.
Path Forward for Pi Network
Pi Network’s future success depends on addressing core challenges, such as the lack of real-world utility dApps and locked tokens in user wallets. The introduction of the TransFi fiat on-ramp has improved accessibility but has not led to significant price recovery or a market confidence boost. To recover Pi Coin’s price and achieve widespread adoption and a functional ecosystem, rapid efforts are needed to develop a robust suite of dApps and find a solution to unlock or increase the usability and fluidity of tokens once transferred to user wallets.
Pi Network must accelerate development, innovate on core offerings, and remain competitive in the rapidly evolving cryptocurrency landscape to remain competitive and relevant. The ability to solve these fundamental problems will determine Pi Coin’s long-term success and its ability to recover its value and fulfil its initial vision.
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