Pi Network Faces 0.66% Daily Growth Amid Token Unlock Challenges
1min read Pi Network, a cryptocurrency project, is experiencing a period of stability with a slight daily growth of 0.66%. However, the network has faced challenges in recent weeks due to a downtrend in value, partly attributed to ongoing pi token unlocks. The increasing supply of tokens, with millions being released daily, has not been met with sufficient demand, leading to a decrease in the token's value. This situation is reminiscent of the stock market, where an increase in share supply can lead to a drop in share price.
According to the Pi team, a potential solution to this problem could be to burn a portion of the 70 billion tokens they hold. This would decrease the supply and potentially increase demand as news of the burn spreads. The Pi team could also consider burning Pi received from various ecosystem fees, a solution currently used by other blockchains.
The Pi Network is facing a significant increase in token unlocks in the coming months. Nearly 212 million more tokens are set to be released over the next 30 days, with an average of nearly 7 million tokens being released daily. The highest daily amount will be released on April 30, 2025, with 11.220 million tokens. This increase in supply could lead to increased selling pressure, which the Pi team needs to address.
The number of token unlocks is set to nearly double from April to May, with nearly 98 million tokens set to be unlocked in April and almost 197 million in May. This increase in unlocks could lead to increased selling pressure. On average, 131 million tokens are set to be unlocked each month in the coming years, with a current value of almost $80 million per month. To control this selling pressure, the Pi token needs a long-term solution.
Despite these challenges, there are positive developments for the Pi Network. The Chainlink blockchain has integrated 22 new cryptocurrencies, including Pi. The Pi network has also been integrated into the Ethereum blockchain, and the Pi token is now part of the Banxa and Telegram ecosystem, increasing its accessibility and adoption. These developments could lead to an increase in the Pi network price.
If the Pi core team begins to burn Pi tokens with updated tokenomics, the Pi coin price prediction is very bullish. In this scenario, the Pi token is set to hit $1 by the end of the year. However, for Pi to reach this price goal, the macroeconomic circumstances need to be neutral or bullish. An increase in global economic turmoil could crash the crypto market, affecting the Pi token's price.
