Pi Network Coin price has become a fallen angel a year after its much-anticipated mainnet launch. The token was trading at $0.1740 on Friday, well below its all-time high of $3. Its market cap has dropped from its all-time high of nearly $20 billion to $1.3 billion today.
Why Pi Network Coin Price Crashed After the Mainnet Launch
Pi Coin price has been in a strong downward trend since its mainnet launch, making it one of the worst performers in the crypto industry.
First, the crash has mirrored the performance of other tokens, which have dropped by double digits in the same period. For example, Shiba Inu has dropped by 60% in the last 12 months, while Dogecoin has slumped by 62% in the same period. The total market capitalization has dropped by over 28% in the last 12 months.
Second, the Pi Network Coin price has imploded due to slowing ecosystem growth. A year after launch, no retailers accept Pi Coin. Also, there are no e-commerce platforms accepting the token, while no dApps have gone mainstream.
Third, the token has crashed because of increased supply amid ongoing token issuance. Data compiled by PiScan shows that the network has released over 1 billion tokens since the mainnet launch in February last year. Also, over 1.34 billion tokens will be unlocked over the next 22 months, a trend that may continue afterward. Rising token unlocks are a bearish sign as they increase the supply.
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Additionally, Pi Network is highly centralized, with the obscure Pi Foundation holding billions of tokens. This explains why no major exchange has listed it since the mainnet launch. However, there is hope that Kraken will list the token in the coming months, following its addition to its roadmap.
What is the Future of Pi Network?
Pi Network’s developers are working hard to boost the ecosystem and network growth. For example, they have invested in CiDi Games and OpenMind to boost network growth in the near term.
At the same time, the developers are working on upgrading the network from Version 19 to Version 23 of the Stellar Network. The first stage of the upgrade has ended, with the final stage expected to be completed in April this year. Such a move will make the network faster and easier for developers to build.
The developers are also working on the KYC migration, with millions of users moving to the mainnet.
Therefore, there is a likelihood that the Pi Network price will rebound in its second year. This rebound, however, will depend on the likelihood of additional exchange listings and a crypto recovery.
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