Pi Coin Drops 23% as Supply Growth and Market Shifts Weigh on Price

Pi Network's token supply model is being closely examined as investors speculate whether the gradual release of additional coins will negatively impact its value. Currently, only 7.86 billion of the 100 billion maximum Pi coins are in circulation, and the network employs a carefully controlled mining mechanism to manage the supply growth. Dr. Picoin, a prominent crypto analyst, has emphasized that the total supply does not equate to immediate market saturation. With only about 7.9 billion Pi in circulation, the controlled release ensures that the token maintains scarcity, similar to Bitcoin’s capped model [1]. Even if all active miners continue at the current rate of approximately 1.6 billion coins per year, it would take over 40 years to reach 70 billion, and the mining process will slow significantly over time, making the full 100 billion cap unlikely to be reached [1].

Dr. Picoin also highlighted broader industry trends that could benefit Pi. Rapid advancements in AI and robotics, alongside falling hardware costs, are reshaping the global economy. Crypto networks like Pi, which integrate AI and blockchain technologies, are positioned to capture a significant portion of the projected economic growth by 2030 [1]. Additionally, the network may implement coin-burning strategies in the future, which could further reduce the circulating supply and help maintain or increase Pi’s value.

Despite these structural safeguards, Pi’s current price remains under pressure. At $0.358 as of August 16, 2025, the token has dropped 23% for the month [4]. Technical indicators reflect a weak but not entirely bearish market. The RSI is at 41.42, slightly below the neutral 50 level, while the Stochastic Oscillator is at 20.858—just above the oversold threshold [1]. The MACD is slightly negative at -0.019, and the ADX is at 21.886, indicating a weak-to-moderate trend forming. Although these signals suggest a cautious outlook, there are hints of stabilization. A falling wedge pattern identified by analysts suggests the potential for a 150% price increase if Pi can hold key support levels [2].

However, structural challenges persist. The ongoing migration waves have increased the supply by 18% since June, exacerbating downward pressure. Over 65% of Pi’s total supply is still reserved for mining rewards, limiting upside potential [4]. Additionally, Pi’s large supply and limited exchange listings hinder its ability to move quickly compared to lower-supply tokens [7]. These factors, combined with a broader cooling in speculative trading—partly driven by Bitcoin trading near $113,000—have shifted investor interest toward tokens with clearer use cases and stronger fundamentals [4].

While Pi Network continues to maintain its presence in the crypto space, it faces stiff competition from newer projects offering more robust utility. A potential catalyst could emerge from an upcoming hackathon, but the long-term success of Pi will depend on its ability to innovate and demonstrate value beyond its supply structure [4].

Sources:

[1] Will Pi Coin Increasing Supply Crash Price Further? Here’s What to Know – (https://captainaltcoin.com/will-pi-coin-increasing-supply-crash-price-further-heres-what-to-know/)

[2] Pi Network price eyes a 150% breakout as a rare pattern forms – (https://crypto.news/pi-network-price-rare-eyes-a-150-breakout-as-a-rare-pattern-forms/)

[4] Pi Network Targets $0.50 by September, Yet Traders Say... – (https://coincentral.com/pi-network-targets-0-50-by-september-yet-traders-say-its-cheaper-rival-could-deliver-bigger-gains/)

[7] Facebook · Pi Network - India – Pi network's potential future value – (https://www.facebook.com/groups/492496885232267/posts/152****231875322/)