Pi Network's performance is disappointing even in a broad upward market. While many cryptocurrencies are reaching all-time highs, Pi Coin (PI) has fallen to its lowest point this month, significantly reducing investor confidence.
Despite its ambitious community-driven model and a user base of over 60 million, various indicators suggest declining interest in the network and raise concerns about its long-term viability.
Pi Network Crisis... 3 Warning Signs to Watch
First, the supply of Pi Coin on centralized exchanges has surged dramatically. According to defillama data, over 409 million Pi Coins were stored on exchanges in the second week of August, which is the highest level to date.
This inflow suggests that holders are selling tokens to leverage liquidity or reduce losses. A sudden increase in tokens stored on exchanges often signals increased selling pressure.
Moreover, Pi Coin's daily unlock is exacerbating this. The Pi Network is releasing 166.5 million tokens over the next 30 days, pouring additional supply into the market.
Therefore, these factors can apply downward pressure on an already declining price. According to CoinGecko data, Pi Coin's price has dropped 36.4% over the past 60 days, recording one of the largest losses in the cryptocurrency market.
Second, retail interest in the Pi Network is diminishing. When comparing Google Trends search interest for 'Pi Network' and 'altcoins', the former is significantly lagging. This contrasts with previous trends when the Pi Network dominated online attention.
This change suggests that the initial high interest in PI's mobile mining model and open network launch has faded. Competing altcoins are attracting more public attention during the altcoin season's uptrend.
Third, Pi Network's market behavior is moving differently from the broader cryptocurrency rally. According to defillama, Bitcoin, Ethereum, and Solana maintain a high positive correlation, driving investor sentiment upward. However, Pi Network shows a negative correlation. This difference suggests that PI is moving contrary to the positive altcoin season sentiment.
Complicating the issue is the ongoing controversy surrounding Pi Coin's Global Consensus Value (GCV). A prominent pioneer using the pseudonym Mr. Spock emphasized that the unverified GCV community valuation has made them believe PI's value is much higher. As a result, they are not contributing while the price is declining.
"We still think GCV pioneers holding just 5 Pi are rich, but they are not helping us. They believe they are already rich, so they won't buy Pi at $0.40, and they say what's on exchanges after KYB is not real Pi. We are already on the open network," he wrote.
Therefore, all these factors paint a bearish outlook for PI. For now, it seems the Pi Network faces a challenging path unless it achieves significant changes to restore investor confidence.
