Pi Network’s rising token supply fuels selling pressure, raising doubts about price stability as demand weakens.
The price of the Pi Network is experiencing an increase in selling pressure due to the release of an increasing number of tokens, which lacks a distinct method of managing the supply. Consequently, confidence in the token’s long-term destiny is currently waning among community members.
An analyst discloses the reason for the stagnant price of Pi Network
Zoe, a crypto expert, recently stated in a post on X that she believes the primary issue is the increasing supply of Pi Network. Since the network’s inception, users have been permitted to mine tokens via mobile devices. However, the Pi Network price has experienced downward pressure due to the increased circulation of Pi tokens, particularly in the absence of deflationary mechanisms, such as token fires.
A community member noted that only approximately 2.5% of Pi’s total supply of 100 billion tokens is currently enabled and open for trading. Furthermore, 5.2 billion tokens have been transferred but are currently sealed due to time constraints.
Currently, only 7.6% of the tokens are functional. The remaining 92.4% is uncertain. There is presently no official timeline for the issuance of the remaining tokens to the market.
The absence of transparency regarding token emissions, circulation, and distribution continues to be a significant issue. Institutional investors and major exchanges must remain cautious until Pi Network provides more detailed information.
The process of unlocking the Pi Network token continues
The Pi Foundation is preparing to release a significant number of tokens, which is causing short-term concerns to escalate. The anticipated unlocking of over 19 million Pi tokens, which are valued at nearly $10 million at the current market price, is anticipated. The release of over 272 million tokens is scheduled for the next month, with an average of 10 million coins entering circulation daily.
This unlock schedule can potentially release a cumulative value of over $106 million. Unless there is a substantial increase in its use or popularity, the price of Pi Network could decrease because such a significant increase could exceed the current market demand for the quantity available.
Will the price of Pi Coin increase as a result of token burn?
Many community investors desire a token-burning system to assist in mitigating inflation as the Pi Network continues to evolve. They are concerned that the Pi coin price may decline gradually in this system’s absence.
The situation underscores a critical juncture for Pi Network. The Pi Network is widely recognized and has a robust community base. Nevertheless, its long-term price stability is contingent upon increased demand and improved supply management.
At the time of publication, Pi Coin is trading at approximately $0.45. There is minimal purchasing and selling activity, and the price remains stable. The reduced trading volume indicates that fewer individuals are selling, which may result in a price increase in the near future.
