TL;DR
PIs price increased by a mere 2.2% daily, possibly held back by low liquidity, concerns over centralization, and weak investor confidence. Over 215 million PI tokens are set to unlock soon, while exchange holdings have risen to 381.4 million, signaling potential selling ahead.
The entire cryptocurrency market has been on fire over the past few days, with Bitcoin (BTC) tapping a new all-time high price of over $118,000. The altcoins performed quite well, too: Ethereum (ETH) spiked by 8% daily to surpass $3,000, Ripple (XRP) jumped by 9%, and Cardano (ADA) headed north by 16%.
Pi Network (PI) has also posted some gains, albeit far insignificant compared to the majority of cryptocurrencies. Its valuation increased by 2.2% over the last 24 hours, and it currently trades at just below $0.50. Its market cap briefly exceeded $4 billion before retracing to the current $3.8 billion, making PI the 38th-largest digital asset.
PI Price, Source: CoinGecko According to one popular X user, the native token of the controversial crypto project could follow BTCs bullish momentum. However, they suggested that PIs missing decentralization, communication from the CT, and liquidity would hamper the prospects of serious gains.
It wont rise any significantly as it does not have enough liquidity and no decentralization. No one wants to put capital into an ecosystem where 1 couple controls everything, the X user claimed.
Despite a slight price uptick over the last 24 hours, PI is down 70% on a two-month scale. X user Zoe recently argued that the assets main problem lies in its massive supply and the constant release of new tokens.
More than 215 million coins are set to unlock in the next month, with approximately 13.3 million PI scheduled on July 11 alone. This development allows investors to sell their holdings, potentially pushing the valuation even lower.
PI Token Unlocks, Source: piscan.io Zoe thinks PIs price may continue to bleed slowly as long as the team behind the project does not introduce a burning mechanism.
The rising number of PI coins stored on centralized crypto exchanges indicates a rising selling pressure and could contribute to a renewed downturn in the assets price.
The total amount of coins on such platforms stood at 376 million as of July 10, but over the past 24 hours, there was an increase of approximately four million, bringing the figure to 381.4 million.
Gate.io leads with 178.5 million in their depositing wallet, whereas Bitget comes in second with 133.7 million.