Pi Coin Price Plummets to Record Low Amid Token Unlock Frenzy
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Pi Coin Price Plummets to Record Low Amid Token Unlock Frenzy |
Pi Coin (PI) continues to face intense downward pressure as its price drops to an all-time low, driven by an aggressive token unlock schedule and waning investor sentiment. The token has now declined over 44% in the last two months, erasing most of its post-mainnet gains and significantly underperforming the broader altcoin market.
Breakdown Below Key Support Levels
Pi recently broke below the crucial $0.38 support level, triggering alarm among technical analysts. According to market indicators, the Relative Strength Index (RSI) has crashed to 12.15, its weakest reading since March 2025 — signaling extreme oversold conditions.
If bulls fail to regain momentum, analysts warn the price could slump further toward $0.21. However, a recovery above $0.38 could ignite short-covering and push prices back toward $0.45.
Token Unlocks Fuel Supply Overload
At the heart of the sell-off is Pi Network's aggressive token release strategy. Out of a 100 billion maximum supply, 65% is reserved for mining rewards. As of now, only 7.77 billion PI (around 7.7% of total supply) is in circulation.
In August 2025 alone, over 160 million PI tokens were unlocked, dramatically increasing supply and overwhelming buyer demand. This tokenomics strategy is raising inflationary concerns, contributing to downward price pressure.
Migration Bottlenecks Undermine Sentiment
While more than 12 million users have successfully migrated to the open mainnet, delays caused by referral-based and periodic migration systems have left a large segment of the Pi community stranded in the enclosed network.
These unresolved KYC and migration issues are hindering user participation in new initiatives, such as the August 2 voluntary lockup program, which offers up to 200% mining bonuses. Despite its appeal, technical limitations have excluded many from taking advantage of this opportunity.
Community Frustration and Leadership Scrutiny
The lockup scheme, launched by core developers Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, has sparked backlash among users. Many feel the initiative is poorly timed, especially after a 90% price drop since February.
Additionally, the Pi community has expressed growing discontent with the leadership’s communication strategy, especially regarding the open mainnet launch timeline.
Ecosystem Progress Amid Market Turmoil
On the technical front, Pi Network has delivered several key upgrades in July:
- Onramper fiat integration with Pi Wallet
- Pi Node software update to v0.5.3
- Launch of no-code dApp builder tools via App Studio
While these are important steps toward ecosystem development, they’ve yet to translate into meaningful price support due to overriding sell-side pressure.
Mixed Signals from Whales and Market Indices
Interestingly, whale activity has been mixed. On August 2, a large holder reportedly withdrew $148 million worth of PI from exchanges such as OKX, Gate.io, and MEXC — fueling speculation about strategic accumulation.
However, the broader mood remains cautious. The Altcoin Season Index sits at 39, far below the 75 needed to signal a market-wide altcoin rally. Additionally, rising PI balances on centralized exchanges hint at potential future sell-offs.
What’s Next for Pi Coin?
The outlook for Pi Coin hinges on two critical developments:
- Accelerated Migration: Can the Pi Network fully onboard its remaining user base through streamlined KYC and migration?
- Utility-Driven Ecosystem: Will Pi deliver real-world applications that go beyond speculative trading and attract sustainable demand?
Until these challenges are addressed, Pi Coin remains vulnerable to its inflationary supply structure — and dependent on the endurance of its community.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research and consult a licensed advisor before making investment decisions. For official Pi Network updates, visit https://minepi.com.
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