Pi Network Faces 160 Million Token Unlock Risk in August 2025

Pi Network is preparing for a potentially disruptive event in late 2025, as over 160 million PI tokens are scheduled to unlock, significantly expanding the circulating supply and raising concerns over price stability. This development marks one of the largest token unlocks in the network’s history, following a pattern of previous unlocks that have led to notable price volatility [1]. The event, expected to occur in August, could test the resilience of the PI token, particularly as it trades near $0.40—close to its historical low.

With more than 318 million tokens set to unlock by August 2025, the increased supply is likely to outpace demand, creating downward pressure on the token’s value. On-chain data, including metrics like Chaikin Money Flow, indicate growing selling pressure as investors brace for additional liquidity entering the market [2]. Analysts have pointed out that the limited utility and liquidity of PI tokens make the network especially vulnerable to such supply shocks. Most tokens remain locked in user wallets, further constraining their availability for trading [3].

The situation is being closely monitored by both the Pi Network community and the broader cryptocurrency market. While the project’s founders, Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, have not publicly addressed the implications of the unlock, the team continues with standard network maintenance without introducing new policies or updates [4]. This lack of guidance has heightened uncertainty among investors, who are wary of the potential impact on Pi Network’s long-term viability.

The unlock is expected to create short-term turbulence in the PI token’s price, potentially influencing global market sentiment as the token floods secondary markets. While no direct effects on other major cryptocurrencies have been reported, the event could serve as a case study for the risks associated with large-scale token releases in low-liquidity environments [5].

As the market anticipates the unlock, investors are advised to remain alert to trading patterns and sentiment shifts, which will be key indicators of whether the network can stabilize or faces further depreciation. The unfolding scenario highlights broader challenges for projects with limited real-world use cases and strong dependence on community-driven adoption.

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Source: [1] Pi Network Price Forecast: PI targets all-time low ahead of ...

(https://www.mitrade.com/insights/news/live-news/article-3-1001391-20250731)

[2] Pi Network Braces for Tough August as Token Unlock

(https://www.facebook.com/groups/61155****835809/posts/1256482095676716/)

[3] Analyst Breaks Down Pi Network's Core Problems—No ...

(https://www.mitrade.com/insights/news/live-news/article-3-1001615-20250731)

[4] Pi network faces token price drop risk

(https://www.facebook.com/groups/4798699926848653/posts/24720865877538763/)

[5] THURSDAY 31TH JULY 2025 by THISDAY Newspapers Ltd

(https://issuu.com/thisdaylive/docs/thursday_31th_july_2025)