Pi Coin Plunges 74 % From ATH As Fears Mount

In the crypto market, where turbulence is common, some falls stand out more than others. Pi Network, once seen as a promising project, is witnessing its price collapse to an all-time low, shaking investor confidence. While the token struggles to establish itself on major exchange platforms, its trading volume is dropping, a sign of growing disinterest. Can Pi still rebound, or are we witnessing the collapse of a promise that was never fulfilled?

A spectacular fall, declining volumes

The fall of Pi Network is part of a series of structural blockages that are sustainably weakening the project’s dynamics. Indeed, the PI token hit its lowest level this week since February 2022, reaching $0.7915, with a drop of over 74 % from its all-time high.

Meanwhile, the project’s market capitalization has collapsed, dropping from nearly $20 billion to $5.35 billion. This represents “a loss of $14.65 billion.” This correction is significant, as it reveals several major flaws.

Among the explanatory factors, several key elements can be identified:

• The lack of listings on major exchange platforms. Binance, Coinbase, and Upbit (which are strategic for global adoption) have still not integrated the PI token into their markets. This lack of visibility greatly hampers the token’s liquidity and limits its accessibility to international investors.
• A massive concentration of tokens in the hands of the foundation. Data from Pi Scan indicates “that the seven wallets of the Pi Foundation listed on the explorer currently hold tokens worth $50 billion.” This centralization raises growing doubts about the project’s actual decentralization and its economic balance.
• The trading volume is in sharp decline. While the token recorded over $1 billion in daily exchanges in February, it generated only $213 million last Wednesday, a sign of a net disengagement from investors.

These combined elements create a climate of increased uncertainty around Pi Network. While its mainnet has officially been launched, the absence of strong backing, opacity regarding token distribution, and low traction in the markets weigh heavily on its credibility.

A contested governance and an uncertain future

Alongside the drop in price, more structural concerns are crystallizing around the governance of the Pi Network crypto. A significant proportion of tokens is currently in the hands of the Pi Foundation, raising questions about the project’s effective decentralization.

The current estimated value of the tokens held by the foundation would amount to $50 billion. This concentration of supply raises fears of possible market manipulation or a lasting imbalance in token distribution.

Another point of tension: the gradual unlocking of new tokens. More than 1.6 billion Pi are expected to hit the market over the next 12 months, which could increase selling pressure on the price. Without a clear management strategy or redistribution plan, these new emissions risk destabilizing the ecosystem even further.

In the short term, the lack of a public roadmap on these major issues adds to the confusion. The project could be on a more downward slope if rebalancing measures are not taken quickly, particularly regarding governance and communication. As for the future, it will largely depend on Pi Network’s ability to regain investor confidence, diversify its user base, and secure buy-in from major crypto exchange platforms like Binance and Bybit. The time has come for strategic choices.