One of the biggest influences behind Pi Network’s downtrend is the continuous release of unlocked tokens into the market. Pi was created with a max supply of 100 billion tokens, but only 8 billion of those are currently in circulation. Its tokenomics are set up such that tokens are unlocked into circulation every day.
More token unlocks are expected in the near future, and the increase in circulating supply has far outpaced demand. Data from PiScan shows that about 4.5 million Pi worth $1.614 million are released every day. This oversupply problem could leave the price of Pi Network vulnerable, and each token release could further weaken the value of those in circulation.
Furthermore, the current order books for Pi Network across several exchanges are extremely thin, leaving too few buyers in the market to absorb the wave of selling pressure.
He further suggested that Pi’s mining model must be reconsidered either by ending it completely to lock the supply or by introducing utility-based mining that rewards only those who contribute real value to the ecosystem.
At the time of writing, Pi Network is trading at $0.3552, down by 1% in the past 24 hours. A drop below $0.350 could guarantee further declines to $0.34.
