- Pi Coin’s value has dropped more than 50% over the past week and is now trading near $0.70.
- A scheduled unlock of 5.7 million Pi Coin tokens today is expected to increase supply and pressure the market further.
- Exchange data shows that Pi Coin holdings have reached a record high of 397 million tokens.
Pi Network’s native token price dropped over 50% in the last week in global trading markets. Moreover, today’s scheduled unlocking of 5.7 million Pi Coin tokens increases supply pressure significantly. Thus, market participants now question whether Pi Network price could crash further amid rising supply.
Pi Network Faces Rising Token Supply
Pi Network’s protocol arranges token releases that help the available supply to its users slowly rise. Today, nearly 5.7 million Pi Coin tokens can be traded. Therefore, supply in the market might increase significantly, and prices may continue to fall even more.
In addition, previous plans dictated that tokens be released step by step according to the schedule approved by Pi Network users when it started. The protocol slowly limits the number of coins released daily to keep the altcoins stable. On the other hand, the level of unlocking now puts the control of supply in Pi Network to the test in an unpredictable market.
The weekly unlock volumes increased 20% from what was scheduled last week. For this reason, more than 1.2 billion Pi Coins are active and traded on exchanges. Additionally, the amount of today’s unlock is a big part of the daily limit set by the Core Team.
Rising Pi Coin Deposits Signal Selling
397 million Pi Coins were held at an all-time high on the world’s largest trading networks. Furthermore, the increase is due to Pi users needing more liquidity and storing their Pi coins in a stream. For this reason, the number of sell orders in the available market could increase substantially because of a higher exchange reserve.
Analytics suggest that exchange reserves rose 15% over the past week to a new record. It is also worth mentioning that more people are signing up now to trade Pi Network tokens. Therefore, pi coins housed within exchange order books are now ready for easy exchange by those on the market.
Many analysts say that there is usually more selling activity during price volatility if exchange deposits rise. Additionally, if an individual opts to withdraw a large sum, the result could be quick and strong variations in the trading prices of Pi Network. Because of this, those involved in the market may change their positions if Pi Coins are not on the market soon.
Community Trust Erodes Amid Transparency Concerns
A well-known influencer claimed that the Pi Core Team had access to more than 10,000 hidden wallets unseen by the public. However, the community can easily observe only the largest Bitcoin wallets by tracking the public ledger. Consequently, many concerned parties made suggestions this week for Pi Network to be more open about its work.
They also found it troubling that the Pi Core Team’s leadership did not provide answers to the situation. Critics also focused on the Pioneers, who continued to stand by the team during the disclosure of suspicious moves. In February, 86% of Pi Network users wanted their currency to be listed on primary exchanges.
On May 16, Nicolas Kokkalis, the founder of Pi Network, gave a brief speech at Consensus 2025 before the big investor panels. While he was on air, tokens fell 18% as the community’s trust in the protocol decreased. As a result, people in the community seem to have less trust in Pi Network’s management.
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