Pi Network is currently one of the most significantly declining coins, losing over 11% at the time of writing and dropping to an all-time low. This has raised concerns among market participants, as many evaluate the underlying reasons behind the current decline in the value of Pi Coin.
However, it seems that despite the decline, many Pi Community enthusiasts remain optimistic about the future potential of this asset. Currently, market experts are mainly focused on the upcoming token unlock and the upcoming uncertainties surrounding the Pi Network.
Why is the Price of Pi Network Declining Today?
The price of Pi Network has dropped more than 5% today to $0.3528, recovering from an all-time low of $0.341 recorded in the past 24 hours.
Notably, despite the decline, the daily trading volume of this asset has surged by 86% to $168 million, indicating significant selling activity in the market.
Derivatives data also paints a bleak picture. According to data from Coinalyze, the open interest of Pi Coin has decreased by 8% compared to yesterday, down to $10.4 million.
However, the relative strength index (RSI) of this asset seems to have provided reassurance to traders.
To illustrate, the RSI of Pi Coin is currently at 33, nearing the oversold threshold. In other words, this indicates that this cryptocurrency could attract more traders to participate in the market at favorable prices.
Meanwhile, experts have pointed out several underlying reasons behind this decline.
To understand better, in a recent post on X, a Pi Community enthusiast pseudonymously known as 'The Times of PiNetwork' highlighted key factors that could contribute to the ongoing decline in the value of PI.
Whale Sell-Off and Delay in Listing on Binance
According to the analyst, one of the main reasons behind the recent sell-off could be due to large whales or institutions liquidating.
He notes that the sudden large sell-off may have caused panic in the market, leading to a wave of stop-loss orders and liquidations.
This sell-off, which he believes was caused by whale investors or institutions rather than individual investors. Additionally, market sentiment has been further affected by the surge in trading volume and the drop in value.
Moreover, he emphasized that not being listed on Binance is another potential factor. 87% of the community voted in favor of listing Pi Coin on Binance.
However, the exchange has yet to make an official announcement. This delay has caused disappointment and panic among investors.
Unlocking the Pi Network and Centralization Issues
Another factor that The Times of PiNetwork highlighted is the upcoming token unlock. According to PiScan data, 160.35 million Pi tokens are expected to be unlocked in the next 30 days.
They are valued at $56.78 million at current prices. The largest unlock, expected to occur on August 8 and 16, will release 8.3 million tokens each day.
On the other hand, the Pi Community also criticizes the centralized nature of the Pi ecosystem. Concerns about the concentration of Pi coins among a small group of users have raised worries about the potential for price manipulation.
In addition, experts noted that the Pi Network ecosystem currently lacks robust decentralized applications (dApps) and real-world use cases, limiting demand and driving prices down.
Agreeing with a similar view, expert Kim H Wong believes that Pi Network faces two major issues, which are the lack of available dApps for exchange and the limited number of Pi coins due to locked wallets.
Wong believes that unlocking available applications and conducting the second Pi migration could help address these issues and allow the network to thrive.
However, despite the current decline in Pi Network's price, some experts remain optimistic about Pi Network's future prospects.
To understand better, being listed on Binance, large-scale token burns, or improving the Pi ecosystem could help stabilize prices and drive growth.