Pi Network Token Drops 77% as 126.6M Tokens Unlock in April: What’s Next?
Pi Network, once the darling of mobile-based blockchain mining, has been experiencing significant volatility. The project’s native token, PI, is nearing its all-time low, currently trading at $0.6722, just above the $0.6152 low it hit in February. This drastic decline comes after a peak of $2.98 earlier this year. The PI token has lost over 77% of its value in the past few months, raising questions about the future of Pi Network.
In this article, we’ll explore the reasons behind Pi Network’s steep price drop, including the effects of token unlocks, the broader market context, and the challenges the project faces going forward. We’ll also analyze the potential for recovery and what investors should be watching as the situation develops.
What’s Driving the Drop in Pi Network Token’s Price?
Pi Network has been steadily unlocking a significant portion of its tokens, leading to increased supply while demand has remained relatively weak. This imbalance is one of the main reasons behind the PI token’s price drop. Over 126.6 million PI tokens are set to be unlocked in April, adding to the already circulating 4.9 billion tokens.
Since Pi Network’s launch in 2019, it has followed a referral-based mobile mining system, where users mine tokens through their phones. However, despite its widespread user base, the project’s token supply has outpaced its adoption, contributing to substantial price declines.
Pi Network has been unlocking an average of 133 million tokens per month, with another 1.54 billion set to be released over the next year. The continuous influx of tokens into the market increases the total supply, causing downward pressure on the price.
What Experts Say About Pi Network’s Price Drop
Alex Obchakevich, founder of Obchakevich Research, highlighted the issue, stating, “Monthly unlocks exceed demand, which greatly affects the value of the token.” While some investors remain hopeful for a price rebound, Obchakevich’s comments point to the difficulty Pi Network faces in sustaining a stable value due to weak demand and an overabundance of tokens.
Despite these challenges, Pi Network recently held PiFest 2025, an event that showcased over 125,000 sellers and 58,000 merchants. The event saw over 1.8 million Pioneers using PI tokens for real-world transactions in cafes, auto shops, and other services. However, despite these efforts, PI’s value continues to fall, prompting concerns about its real-world utility and future viability.
Pi Network: Unlocking 126.6M Tokens in April
The Pi Network’s continued token unlock process is one of the primary drivers of the price decline. With over 126.6 million tokens unlocking this month, the market is being flooded with additional supply, leading to further pressure on the token’s price. To put this in perspective, Pi Network has already released 4.9 billion tokens into circulation, and another 1.54 billion will be unlocked over the next year.
While the token unlocks are part of Pi Network’s planned tokenomics, the constant increase in supply without a proportional rise in demand has led to a substantial devaluation.
How Do Token Unlocks Affect Market Value?
Token unlocks are a common occurrence in many cryptocurrency projects, where tokens are gradually made available for trading after an initial lock-up period. While this is necessary for long-term project sustainability, it can result in short-term price drops if the market is not ready to absorb the influx of new tokens. In Pi Network’s case, the monthly unlocks have consistently outpaced demand, which has contributed to the token’s significant drop in value.
Pi Network’s Market Outlook: Can PI Recover?
Pi Network has faced criticism for its limited liquidity and the uncertainty surrounding its long-term viability. Many prominent figures, including ByBit CEO Ben Zhou, have openly criticized the project, calling it a “scam” and stating that exchanges like ByBit will not list Pi Network’s tokens. Despite these criticisms, some analysts, including Obchakevich, still see potential in Pi Network if it can stabilize and regain investor confidence.
For Pi to recover, a few key factors need to align:
- Increased Demand for PI: The Pi token must see stronger real-world usage and utility for its value to increase. Events like PiFest 2025 are steps in the right direction, but long-term adoption must follow.
- Controlled Token Unlocks: Pi Network must find a way to reduce the rate at which tokens are unlocked or create demand to offset the increasing supply.
- Liquidity and Exchange Listings: Pi must secure more exchange listings and improve its liquidity to provide investors with easier access to trading.
Technical Indicators: Is PI at a Bottom?
Technical analysis suggests that PI is at risk of further declines. The token is currently trading within a descending triangle pattern, which typically signals continued price drops unless a significant breakout occurs.
The Relative Strength Index (RSI) stands at 26.18, indicating that the token is in oversold territory. However, despite this, there are no immediate signs of a reversal. Additionally, the token has dropped below the 20-period Exponential Moving Average (EMA), a bearish signal that indicates weak short-term momentum. Analysts predict that if selling pressure continues, PI could test its February low of $0.6152 again or potentially dip below $0.50.
Pros and Cons of Pi Network’s Current Situation
Pros ✅:
- Large User Base: Pi Network has a massive global user base, with over 1.8 million Pioneers using PI tokens for transactions.
- Innovation: Pi Network continues to innovate, hosting events like PiFest 2025 and integrating PI into real-world use cases.
- Potential for Growth: If Pi can control token unlocks and improve liquidity, it has long-term growth potential.
Cons ❌:
- Over-Supply: Continuous token unlocks are flooding the market with supply, reducing scarcity and putting downward pressure on price.
- Weak Demand: Despite efforts to increase adoption, demand for PI remains low, and its real-world use is still limited.
- Criticism and Skepticism: High-profile figures in the crypto space, including ByBit’s CEO, have criticized Pi Network, questioning its legitimacy.
What’s Next for Pi Network?
Pi Network has a long road ahead to regain market confidence and stabilize its price. While its large user base and unique mobile-first approach are strengths, the project must address its supply-demand imbalance and improve liquidity to see sustained growth.
The upcoming months will be crucial as the Pi Network faces the challenge of unlocking more tokens while trying to increase adoption and demand. If Pi Network can successfully navigate these hurdles, it may have a shot at recovery and long-term success.
Frequently Asked Questions (FAQs)
- Why has Pi Network’s token price dropped so significantly? The drop is mainly due to the continuous unlocking of tokens, leading to oversupply in the market, while demand remains weak.
- What are token unlocks, and how do they affect the price of PI? Token unlocks release previously locked tokens into circulation, increasing supply. If demand doesn’t match the increase in supply, it can cause the token’s price to drop.
- Can Pi Network recover from its current downturn? While the project faces significant challenges, Pi Network has potential if it can control token unlocks, increase demand for PI, and secure more liquidity.
- What is PiFest 2025, and how does it relate to Pi Network’s future? PiFest 2025 was an event to promote the adoption of PI tokens in real-world transactions. The success of such events could increase demand and help stabilize the price.
- Is Pi Network a scam? There is ongoing debate about Pi Network’s legitimacy. Some crypto leaders, like ByBit’s CEO, have criticized the project, but it remains operational with a large user base. Always conduct thorough research before investing in any cryptocurrency.
Conclusion
Pi Network’s recent price drop and the ongoing unlocking of tokens have raised concerns about its future. While the project has potential, especially with events like PiFest 2025 driving adoption, the imbalance between token supply and demand remains a major issue. For investors, the next few months will be critical in determining whether Pi Network can stabilize and recover or continue its decline. Stay informed
Disclaimer
This article is for informational purposes only and should not be considered financial advice. Cryptocurrencies are volatile and speculative investments. Always conduct your own research and consult with a financial advisor before making any investment decisions. The views expressed in this article are those of the author and do not reflect the views of any financial institution.
