On February 20, 2025, after the official launch of the Pi Network (PI) mainnet, its token experienced dramatic price fluctuations on exchanges like EuYi, with an increase of over 100% within 24 hours. Combined with market dynamics and on-chain data, this surge was mainly driven by the following factors:
1. Short-term market sentiment catalysis
1. Mainnet launch releases liquidity
After the mainnet launch, users need to complete KYC verification and migrate tokens, leading to a short-term surge in market supply. However, as the selling pressure from early miners eased, liquidity gradually stabilized, and the price rebounded from a low of $0.60 to $1.49.
2. Binance listing expectations drive demand
Binance community voting shows that 85%-86% of users support the listing of the PI token. Although voting from mainland China was excluded, the optimistic sentiment in the global market still transmitted to exchanges like EuYi, attracting speculative funds.
2. Project party and community game
1. Team clarifies controversial allegations
In response to Bybit CEO Ben Zhou's 'Ponzi scheme' allegations, the Pi Network team quickly denied and emphasized technological compliance, briefly boosting market confidence.
2. Controversy over multi-level marketing model and user game
Despite the long-term questioning of the project's 'head-hunting' model, the community effect formed by the 60 million user base still drives short-term speculative demand. Some users choose to hold tokens, creating a long-short game with sellers.
3. Exchange traffic and leverage effect
1. Leading exchanges linkage
After exchanges like Gate and okx listed the PI token, prices fluctuated dramatically (for instance, Gate's opening surged to $2.88 before falling), attracting users from EuYi to follow suit in trading.
2. High leverage contracts amplify volatility
Exchanges launched 50x leverage contracts, attracting short-term speculators to amplify price fluctuations, further heating up the market.
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Future risk warning
1. Regulatory pressure
Various regions in China have clearly indicated the risks of Pi coin. If more countries follow with regulations, it may restrict token circulation and lead to exchanges delisting.
2. Uncertainty of technology implementation
Currently, the PI token lacks practical application scenarios, ecological construction is lagging, and long-term value is in doubt.
3. Price correction risk
The current RSI indicator shows overbought signals. If it fails to break through the descending trend line resistance (around $1.8), it may fall back to the support level of $1.00-$1.21.
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Conclusion
The surge of the PI token is a comprehensive result of market sentiment, exchange traffic, and regulatory games. Investors should be cautious of short-term bubbles, pay attention to project technological progress and compliance, and avoid blindly chasing highs.
