Pi Network has dropped 40% in the past 2 weeks: 3 reasons for the decline
Pi Network attracted significant interest from investors last month, drawing attention in the cryptocurrency market. However, the price has dropped by 40% over the past two weeks, leaving investors feeling uneasy. The current price fluctuates between $1.30 and $2, and uncertainty remains in the market.
General market stagnation and uncertainty
The sharp decline on Pi Network is related to the volatility of the overall cryptocurrency market. Major crypto assets like Bitcoin, ADA, SOL, and XRP have also depreciated significantly in recent weeks. Geopolitical developments and global economic concerns are negatively impacting investor sentiment.
In particular, the trade policies in the United States and potential new tariff policies are creating uncertainty in the market. As the crypto market is often sensitive to global economic developments, this volatility has made investors more cautious. After Bitcoin fell below $80,000 from a peak of $100,000, a negative atmosphere has formed across the market.
Pi Network still competes with strong rivals
Pi Network, which is still a new project in the market, has not yet been listed on major exchanges. Facing strong competitors like Bitcoin and Ethereum, investors are uncertain about Pi's long-term success. From the perspectives of liquidity, use cases, and investor trust, Pi is still in the development phase.
It is expected that during the upcoming mainnet transition, Pi Network will be able to conduct more transactions. During the transition expected to be completed on March 14, users will need to undergo KYC verification to bind their wallets. If this process is successful, Pi may be more widely accepted and there could be a price rebound.
Investors are taking profits
Pi Network experienced a significant rise of over 200% last month. After such a sudden surge, early investors may have begun to realize profits.
Due to ongoing uncertainty, some investors may prefer to take short-term profits rather than hold assets for the long term. Especially since the outcome of the transition on March 14 is still not entirely clear, investors may see selling before a price drop as a safe move.
Not investment advice, personal opinion
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