Pi Network price has plunged by 85% since its highly anticipated mainnet launch in February this year. It has also plunged by over 90% from its all-time high, making it one of the top laggards in the crypto industry. This article highlights some of the top reasons why the Pi Coin price has plunged this year.
Pi Network Price Crashed Because of Its Token Unlocks
One of the main reasons why the Pi Network price has plummeted is that the supply of the token has been in a strong uptrend this year. The platform unlocks roughly millions of tokens each day, a process that might go on for years to come.
PiScan data shows that the Pi Network will unlock over 1.26 billion tokens in the next 12 months. The average monthly unlocks will be over 23 million tokens.
Token unlocks are often bearish, especially when they are not accompanied by burns. One way that the team can boost the value is by incinerating billions of tokens. A good example of this is when the OKB price jumped after the team reduced the circulating tokens to 21 million coins.
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Pi Coin Price Crashed Because It Is a “Ghost Chain”
The main reason for the decline in Pi Network price since the mainnet launch is that it is considered a ghost chain. A ghost chain refers to a blockchain network that exists without any activity.
While Pi Network has hundreds of apps in the ecosystem, the reality is that only a handful of people use them. For one, these apps are only available on the Pi Brower, which creates another layer for users to access them.
Pi Network is not available in local shops or other retailers as a payment method, contrary to what the developers promised. Its volatility will most likely prevent it from achieving that goal.
Meanwhile, the developers have announced measures to boost their ecosystem. For example, there is an ongoing testnet of DEX and AMM features. They also launched a $100 million ecosystem fund and an upgrade to the App Studio.
Centralization and Exchange Listings
Pi Coin price has also imploded because no major crypto exchange has listed the token since its launch. Top exchanges like Binance, Coinbase, and Upbit have avoided listing it. This is notable since these companies have all listed some less popular and controversial coins like Hamster Kombat and Mantra.
One reason they have avoided Pi Network is its high centralization, with the foundation holding over 90 billion tokens. This lack of liquidity has made it extremely difficult to trade.
Pi Network can solve this listing issue by first announcing a large token burn and focusing on decentralization.
There are other reasons why the Pi Network price has crashed since its mainnet launch. For example, many pioneers have dumped their tokens due to a lack of transparency and the overall crypto market crash.
