Pi Network Readies 119 Million Tokens for Release by Month-End, Amidst a 30% Price Slump
Revised TLDR
Here's the Skinny on Pi Network (PI)
- Pinched at $0.59, Pi Network's (PI) price has shrunk over 30% in the past fortnight.
- By the end of this month, about 119 million Pi tokens are predicted to hit the market, with 1.4 million already loosened on April 11.
- The Pi community is growing restless over delays, non-transparency, and the management approach.
- Witnessing a 6% surge and Banxa's alleged acquisition of 1.2 million tokens in 48 hours, bullish signals are on the rise.
- With the potential of a token burn strategy to handle the oversupply problem, Pi Network might be steering towards deflationary waters to rekindle trust.
Pi Network's Rollercoaster Ride
Pinched hard at $0.59, Pi Network struggles to breach the $0.60 key resistance level, plummeting over 30% in the last 14 days—a whopping 80% below its record high on February 26.
The ride gets bumpier with the unlocking of 119 million Pi tokens slated for this month alone. On April 11, 1.4 million tokens were set free, and the rest is due to roll out gradually throughout the rest of April.
All the while, the Pi community finds itself simmering with discontent. Pi Network Turkey, the project's biggest community in the region, spoke its mind in a stern statement, calling out the developers for their top-down decisions, disregard for community feedback, and deviations from the platform's original decentralized vision.
"What was once an enjoyable ride has turned sour," the statement read, highlighting broken promises, non-transparent decision-making, and continuous delays in the Open Mainnet launch.
Trust Tanking
Besides the normal token unlocks, other issues raised by the community include unclear financials, hazy partnership details, and dearth of visibility into the actual number of live decentralized applications (dApps) on the network.
Some experts believe that Pi Network's tumble mirrors not just token unlocks but also growing reservations about the project's long-term vision and promise in the Web3 world. In the face of mounting questions about Pi Network transforming the crypto hype into concrete deliverables, its credibility takes a hard hit.
As of April 11, 2025, the price of Pi Network in India stands at ₹51.37, imitating the token's sliding value worldwide.
Toward a Scarcity-Driven System
In response to the oversupply woes, a token burn strategy is under consideration. This approach, popular in the crypto sphere, aims to create scarcity and hence, potentially hike prices by reducing the token supply.
For Pi Network, which minted billions of tokens early in its infancy, the supply glut has become a core issue. A successful burn strategy could rejuvenate trust and capture investor attention by moving the system toward a deflationary model.
Some proposed burn mechanisms include periodic burns, burns imbibed with mining or transaction activity, and community-led burns that reward participation. If executed rightly, this could etch scarcity into the system and reset market expectations.
However, hurdles remain. Pi Coin's limited tradeability, with no major exchange listings, means even a substantial burn might only generate short-lived price effects. Liquidity stays scant, and without a thriving working ecosystem, user interest might flag before changes gain traction.
A Mixed Bag of Signals
From a technical perspective, Pi Network's price action shows a turbulent descent followed by consolidation. The token found robust support between $0.43 and $0.46 after a steep fall, suggesting a local base before springing up.
Even though a breakout from a descending wedge failed, a strong bullish candle propelled Pi's price above $0.75, only for renewed selling pressure to set in. The rally shortly lost steam, and the price settled within a tighter range between $0.55 support and $0.60 resistance.
Several breakout attempts have been declined, hinting at indecisiveness among investors. With the Relative Strength Index (RSI) at 57.06, there's a growing bullish momentum. Recent golden and death crosses on the Moving Average Convergence Divergence (MACD) reflecting changing sentiment among traders.
Rays of Hope
Despite the overall negative trend, there are instances of resurgence. With a 6% jump, Pi Network's price brushed shoulders with $0.65, only to stabilize around $0.60. This surge lined up with the broader recovery of the cryptocurrency market and strategic thrusts by the Pi Network team.
Reports indicate that Banxa purchased over 30 million PI tokens, with 1.2 million tokens gathered within 48 hours. These significant acquisitions may signal an escalating trust in the Pi ecosystem.
Pi Network has also announced a new collaboration with Banxa, which may herald positive ripples surrounding the token. The team continues to progress with the rollout of decentralized applications and anticipate the open mainnet phase.
As the narrative unfolds, the coming weeks will be instrumental in determining Pi Network's fate in the crypto world.
Pi Network's price struggles to breach the $0.60 key resistance level, mirroring a 30% decline over the past fortnight, as the community awaits the release of 119 million tokens this month. The growing concern among the Pi community about delays, non-transparent decision-making, and deviations from the platform's original decentralized vision, all contribute to a decrease in investor trust. On the other hand, the potential of a token burn strategy to handle the oversupply problem indicates Pi Network may be transitioning towards a deflationary model to regain investor attention and trust, which could be boosted by strategic partnerships in the technology and finance sectors.
