- Pi Network has experienced a sharp decline, losing 70.9% of its value from its all-time high due to massive token unlocks and concerns over its sustainability, including technical issues and a questionable business model.
- While some traders anticipate stabilization after March 23, further corrections seem likely unless the project proves its long-term viability.
Pi Network, a cryptocurrency that recently saw a meteoric rise, is now facing a dramatic downturn. After hitting an all-time high of $2.98 in late February, the token has since lost 70.9% of its value. On March 21 alone, PI plummeted by 25%, settling at $0.8699. The decline raises concerns among traders and investors about whether the worst is yet to come.
Major Token Unlocks Fuel Selling Pressure
One of the primary reasons behind PI Network’s steep drop is the influx of new tokens into the market. On March 20, nearly 24 million PI tokens were released, creating immense selling pressure. The market, already relatively illiquid, struggled to absorb the new supply, leading to a significant price drop. The selling pressure is expected to continue at least until March 23, when the number of unlocked tokens will fall below 5 million per day. Some traders believe this could stabilize the price, while others remain skeptical about the token’s ability to recover.
Lingering Concerns: Is PI Network Sustainable?
Beyond the immediate price correction, PI Network is grappling with fundamental issues. Key concerns include:
- Technical Issues: Challenges with token migration to the mainnet and slow KYC verification processes have frustrated users.
- Skepticism Over Business Model: Critics argue that Pi Network operates like a pyramid scheme, as tokens are only earned when users invite others to the platform.
- Lack of Real-World Use Cases: Unlike established cryptocurrencies, PI has yet to prove its utility in the broader digital economy.
What’s Next for PI Network?
Many analysts believe that PI Network was overvalued from the start. Currently, it has a market cap of $5.89 billion, ranking it 23rd among all cryptocurrencies. However, its circulating supply is just 6.79 billion PI—only a small fraction of its total 100 billion supply. If all tokens were released today, PI Network would need to surpass major cryptocurrencies like BNB, Solana, and Dogecoin in market capitalization, an unlikely scenario given its current trajectory.
For now, traders are watching closely to see whether the selling pressure eases after March 23. However, unless Pi Network can address its fundamental challenges and prove its long-term viability, further price corrections seem inevitable. Investors should brace for continued volatility in the days ahead.