Pi Network Price Volatility Amid Unlock Pressure and Mainnet Expansion

Pi Network’s price struggles to extend gains amid increased token deposits and outflows, raising bearish concerns.
- Over 193 million Pi tokens are set to unlock in February 2026, potentially increasing downward pressure on the token’s value.
- The Pi Core Team moved 500 million Pi tokens internally in early February, possibly preparing for ecosystem expansion.

Pi Network’s price has shown mixed technical signals, trading near $0.16 despite a potential rebound on Monday. The market is under bearish pressure due to increased deposits on exchanges, combined with outflows from the Pi Foundation and core team wallets. PiScan data indicates a sharp decline in confidence among both holders and developers. The RSI indicator remains oversold, suggesting ongoing downward momentum, but the MACD may signal a potential reversal.

The Pi Core Team’s internal transfers of 500 million Pi tokens and the unblocking of 2.5 million users for Mainnet migration highlight the project’s focus on long-term infrastructure development. These updates streamline the KYC process and introduce palm print authentication to enhance security. Meanwhile, the project is testing a reward system for KYC validators, expected to launch by late March.

Pi Network is also emphasizing its commitment to building a sustainable and decentralized network. Staking $PI allows users to lock tokens in smart contracts to earn rewards and influence governance decisions. Longer lock durations and active participation in governance increase stakers' influence and potential returns. The staking mechanism is designed to reward long-term holders and foster network stability.

What Drives Pi Network’s Price Volatility?

The token’s price is currently under pressure due to a combination of factors. Large deposits and outflows indicate that many holders are looking to take profits after a short-term recovery. This trend is exacerbated by the fact that 193 million Pi tokens will unlock in February, increasing supply pressure. On the positive side, exchange balances have started to decline slightly, suggesting early accumulation activity. However, low trading volume remains a concern.

The Pi Core Team has taken steps to address user concerns by unblocking 2.5 million users and streamlining the KYC process. This move has increased the number of identity-verified users to 17.5 million. The Pi Core Team also warned against a scam targeting users through email and social media, emphasizing that they will never request wallet passphrases.

What Is the Long-Term Vision for Pi Network?

Pi Network has shifted its focus from rapid expansion to foundational growth. The project prioritizes infrastructure development, real-world utility, and gradual adoption. By building a secure, scalable, and human-verified blockchain, the network aims to support global adoption while maintaining flexibility for future upgrades.

The network is also positioning Pi Coin as a long-term store of value, drawing comparisons to gold. This analogy reinforces the idea that Pi Coin is not just a speculative asset but a valuable component of a growing Web3 ecosystem. Early adopters who have been mining for years may prefer to hold their coins, anticipating broader adoption and increased utility.

Staking and governance mechanisms further align with the project’s long-term goals. Staking encourages long-term commitment and decentralization. By locking tokens and participating in governance, users contribute to the network’s security and decision-making processes. This approach is designed to move beyond simple yield farming and focus on sustainable, decentralized growth.

What Are the Risks and Opportunities for Pi Network?

Despite the project’s long-term vision, several risks remain. The large token unlocks in February could lead to increased selling pressure, especially if market sentiment remains weak. Low trading volume and heavy unlock pressure create a negative mix that could continue to weigh on price. Additionally, the project must navigate regulatory and security challenges as it moves toward broader adoption.

However, the unblocking of 2.5 million users and the introduction of new security measures represent significant progress. These developments signal a commitment to building a secure and scalable blockchain ecosystem. Furthermore, the Pi Core Team's recent internal transfers may indicate preparations for future ecosystem developments.

As the project moves forward, the focus will be on maintaining network stability while expanding real-world applications. The success of Pi Network will depend on its ability to balance growth with security and maintain long-term investor confidence.