Pi Network and the Decline of Pi Coin

Pi Network’s native cryptocurrency, Pi Coin (PI), has experienced a significant drop in value, falling below the $1 mark. Recent market data indicates that Pi has lost more than 18% in the last 24 hours, raising concerns among investors. If PI fails to maintain its $0.95 support level, further declines could push the coin as low as $0.87. Conversely, a change in sentiment could see it rise back to $1.34 and beyond, though bulls face a challenging road to regain momentum.

Why is Pi Coin Falling?

Several factors have contributed to Pi Coin’s sharp decline in value, prompting investors to seek explanations.

Binance and Coinbase Listing Failures

One significant factor behind Pi’s downfall is the delay in listing the coin on major exchanges like Binance and Coinbase. Both platforms had previously teased the possibility of listing PI, generating speculation and optimism among investors. However, the lack of these listings has dampened sentiment, leading to a decrease in demand for Pi Coin. This absence of official exchange listings has left many questioning the coin’s future and its viability in the broader market.

Decreasing Supply and Deflationary Pressures

Although Pi Network has not officially announced a coin burn, the supply of Pi is steadily shrinking due to several mechanisms:

• Transaction Fees: Pi’s transaction fees are burned permanently, with over 528,671 PI tokens burned by early March at a rate of 3,000–4,000 tokens daily. While beneficial from a supply reduction standpoint, the deflationary pressure has not been enough to counteract the broader market sentiment surrounding the coin.
• Unverified Accounts: Tokens held by users who missed the Know Your Customer (KYC) deadline have also been burned, further reducing the coin’s total supply. The circulating supply currently stands at approximately 6.8 billion PI tokens. These measures aim to tackle fake and abandoned accounts but have intensified the perception of a decreasing supply.

Investor Sentiment: FUD or Genuine Concern?

The drop in Pi Coin’s value has ignited widespread fear, uncertainty, and doubt (FUD) in the market. Sentiment has worsened by 80% within a day, with some users even alleging “manipulation” and “panic” selling. Additionally, trading volume has decreased by 37%, indicating a reduction in market activity.