The highly anticipated Pi Network token has faced significant selling pressure following its Open Mainnet launch. Its price has dropped over 60% from initial highs. This decline might be just the beginning of a larger downward trend.
Pi Network, launched in 2019, introduced a novel approach to cryptocurrency mining through mobile devices. The project gained widespread attention for enabling users to mine tokens simply by opening their mobile app daily. They did need expensive mining equipment or have issue with high energy consumption.
The platform’s user-friendly approach attracted millions of “Pioneers” who could participate in various roles: miners, contributors who invited others and supported network security, and nodes that verified transactions.
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Pi Network Launch Day Volatility: The Dip Could Get Worse
The token’s debut on exchanges saw an initial price surge, reaching $2.8 on Gate.io price chart. However, this enthusiasm was short-lived as early miners began cashing out their long-held positions, driving the price down to approximately $1.1 at the time of writing.
The selling pressure could intensify as more users realize big profits might not materialize as hoped. This realization could trigger a cascade of selling, particularly among early miners who have waited years to monetize their holdings.
The current market dynamics reveal interesting numbers: roughly 562 million Pi coins are unlocked and trading, while 4.5 billion remain locked under user agreements. The vesting period structure, which locks 80% of mined Pi for three years, creates an interesting dynamic. While this initially supports price stability, it also means a significant supply overhang looms over the market.
Potential Silver Linings for Mid-Term Spikes
Despite the current downturn, several factors could support Pi token price:
- Multiple exchange listings, including potential Binance support, could increase visibility and trading volume
- Current token scarcity (before the unlocks) might create upward pressure as new investors enter the market
- Growing confidence in the project’s legitimacy due to major exchange adoption could also help its mid-term growth
Read Also: Binance Poll on Pi Coin Sparks Massive Interest—Could It Compete with Bitcoin and XRP?
Pi Token Long-term Outlook
Pi Network’s ultimate success will largely depend on its ability to build a sustainable ecosystem. This includes developing practical applications and forming partnerships that create genuine utility for the token.
While immediate price action appears bearish, the project’s focus on accessibility and community building could provide a foundation for future growth. However, much depends on how effectively the network can transition from a mining-focused platform to one with practical, real-world applications.
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