Data shows a significant shift in the Pi Network (PI) market dynamics, with exchange supply surging and trading volume collapsing in the second quarter. The increase in available tokens and decline in trading activity raise concerns about near-term price stability.
Centralized exchanges witnessed a more than 30% increase in the supply of Pi coin during Q2. By June, the amount of PI held on these platforms reached approximately 345 million coins, indicating growing sell pressure as holders potentially look to liquidate holdings.
Concurrently, trading volume for PI has experienced a sharp contraction. Since mid-May, volume plummeted by over 90%. This severe decline significantly weakens market depth and liquidity, making the token more vulnerable to price drops, particularly with the increased supply available for sale.
Market analysts have issued warnings about the potential for further decline. Key concerns include significant upcoming token unlocks, estimated at 337 million PI, alongside potential wallet outflows from the Pi Foundation team. These factors, combined with the existing market conditions, could drive PI’s price down towards the $0.1 level.
However, a contrasting factor offers potential long-term support. Despite the movement onto exchanges, the vast majority of PI tokens—over 4 billion—remain securely held within Pioneer wallets. This indicates substantial ongoing faith among the core community in the project’s long-term value proposition.
Market observers conclude that PI currently stands at a critical juncture. While bearish signals prevail, the token’s trajectory remains uncertain. Its price could potentially rebound towards $1.7 or experience further declines, heavily dependent on evolving market dynamics and the response from the Pi Network community.