Pi Coin Price Drops 50% Amid Token Unlocks and Insider Sales

Open interest in Pi Coin futures has surged past $30 million as the price dips to $0.40, sparking renewed discussions around market volatility and investor sentiment. The recent price movements are attributed to a significant token unlock event scheduled for August, expected to release 162.8 million tokens into circulation. Historical patterns suggest such unlocks often lead to downward price pressure due to oversupply, complicating expectations for near-term recovery [1].

The Pi Network ecosystem has seen a sharp increase in open interest amid declining prices, yet key leadership figures, including Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, have remained silent on the recent turbulence. This lack of official guidance has contributed to uncertainty among community members, who are closely monitoring the market's response [1]. Analysts speculate that bullish divergence indicators could support a price rebound, though such a recovery remains conditional on a shift in sentiment and a reduction in bearish positions [1].

In July 2025, Pi Network announced an 8% reduction in its mining rate, marking an all-time low in the platform’s operational history. The move is part of broader efforts to manage token distribution and stabilize supply dynamics by encouraging users to lock up their coins. Despite these structural adjustments, Pi Coin’s price remains under pressure, having dropped by 50% in mid-July following reports of insider sales totaling 12 million PI tokens—worth over $8 billion at their peak—according to investigations by crypto analyst Atlas [2].

The market remains in a holding pattern, with Pi’s price fluctuating within a narrow range of $0.28 to $0.33 in July. Analysts note that demand remains steady but insufficient to drive meaningful upward momentum. Additionally, the presence of a mystery whale quietly accumulating 331 million Pi tokens through off-exchange transfers suggests long-term confidence in the asset, despite broader volatility [4].

Technical indicators provide a mixed outlook. Pi Network AI (PIAI) recorded 50% positive trading days over the past 30 days but also showed a 4.86% price volatility rate. On July 31, Pi’s price fell below $0.4200 after briefly rising above $0.4364 earlier in the day. High exchange balances have not been matched by increased trading activity or demand, signaling a possible disconnect between supply-side pressures and investor interest [7].

To address user challenges, Pi Network introduced a fiat option to its wallet system on July 31, aiming to enhance usability and attract a wider audience. While the move aligns the platform with traditional financial tools, its impact on market sentiment remains unproven [8].

Source: [1] Pi Coin&039;s open interest tops $30 million amid price pressures and token unlock event (https://coinmarketcap.com/community/articles/688e013ac9399a6e54e921b3/)

[2] Pi Network Price Unlikely To Rally In 2025 As Insiders Dump Millions More Here Are 2 Pi Coin Alternatives (https://coincentral.com/pi-network-price-unlikely-to-rally-in-2025-as-insiders-dump-millions-more-here-are-2-pi-coin-alternatives/)

[4] Why a mystery whale is quietly accumulating 331 million Pi coins (https://www.tradingview.com/news/cointelegraph:3b60cb420094b:0-why-a-mystery-whale-is-quietly-accumulating-331-million-pi-coins/)

[7] Analyst Breaks Down Pi Network's Core Problems—No (https://www.mitrade.com/insights/news/live-news/article-3-1001615-20250731)

[8] Pi Network Adds Fiat Option to Ease Wallet Issues (https://www.coinspeaker.com/pi-address-wallet-challenges-fiat-pi-coin/)