Pi Network's Token Supply Shrinks 23% Amid Transaction Burns

The pi Network community is closely monitoring potential token burns, despite the absence of official confirmation from the team. Several mechanisms within the ecosystem contribute to reducing the circulating supply, including transaction fees that are permanently removed from circulation. Additionally, unverified accounts that fail KYC verification may further decrease the total supply. These ongoing reductions suggest that the network operates with deflationary tendencies, even without an official Pi token burn event.

While there has been no official announcement regarding Pi token burns, community members have speculated about the possibility based on technical signs and data analysis from the Pi network. One mechanism that reduces the total count of PI coins is the network’s transaction fees, which are removed from circulation and burned to mitigate inflation. According to available data, around 528,671 PI tokens have been burned by early March, with an estimated daily burn rate of between 3,000 to 4,000 tokens. This mechanism is not new and will continue to be a feature of the network. Another group of PI tokens likely to be burned includes those belonging to accounts without KYC verification.

The know-your-customer process was a necessary step for transferring Pi tokens to the mainnet, which opened on February 20. According to posts on X, PI tokens from users who missed the KYC grace period (December 30, 2024) have been burned. As a result, the total supply has been reduced to 6.99 billion, a decrease compared to before the transition to the mainnet. Despite the lack of an official burning event from the Pi network’s team, the supply is systemically reduced.

Despite the reduction in token supply, Pi’s value has been falling recently. pi coin is currently trading at $1.15, recording a nearly 23% weekly decline. This decline can be attributed to external factors such as global economic turmoil and internal factors like recent token unlocks. On March 17, 23.1 million PI tokens were unlocked, valued at $26.565 million. Furthermore, 23.4 million PI tokens are set to be unlocked on March 21, valued at $26.91. Such large token releases often push the price down as traders react to the increased supply.

Although the price has experienced a bearish trend recently, Pi’s price prediction shows that this coin could bounce back. One factor driving this optimistic view is Pi’s increasing adoption, which has recently skyrocketed, especially in China. Various reports indicate that some restaurants and retail businesses are now accepting PI as payment. Such utility and real-world use cases can increase adoption even further and help the coin’s long-term growth. However, there are also technical factors that should be considered for Pi’s future rebound.

Chart 1 highlights that Pi needs to remain above the $1.05 support level to reclaim its bullish momentum. Additionally, a break of the $1.37 resistance level is necessary for further price increases. The coin also has major psychological support at $1.10, which can push Pi to a trend reversal. Such a reversal is likely to send the price above $1.50 and eventually even $2.00.

Looking ahead, Pi’s price prediction will depend on sustaining key support levels and growth in adoption. Additionally, if the network continues to reduce supply through transaction burns and inactive accounts, its long-term value could strengthen. Real-world utility could also drive Pi’s recovery, as the real-world demand may help mitigate inflationary pressures from token unlocks.