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Pi Network’s PI coin supply on centralized exchanges surged by over 30% in Q2, signaling increased sell pressure amid uncertain market conditions.
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Trading volume for PI has plummeted by more than 90% since mid-May, weakening market depth and reducing potential price support.
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Analysts warn that PI could drop to $0.1 due to token unlocks and wallet outflows, despite strong community faith in the coin’s long-term value, according to COINOTAG sources.
Pi Network faces rising sell pressure as PI coin supply on exchanges jumps 30% and trading volume drops 90%, raising concerns over price stability and future outlook.
Sharp Increase in PI Coin Supply on Exchanges Signals Potential Price Decline
Data from Piscan reveals a significant rise in the number of PI coins held on centralized exchanges, increasing from 263 million in early March to 345 million by June—a surge exceeding 30% in just three months. This growing supply on exchanges typically indicates mounting sell pressure, which could negatively impact PI’s price in the near term.
Investor Moon Jeff highlighted this trend, stating, “The only consistent thing about PI is the increasing number of coins in exchanges. The number now stands at 347.6 million PI. It has been rising every single day.”
Moreover, outflows from wallets associated with the Pi Foundation team have been observed, suggesting possible transfers of coins to exchanges or other uses. This combination of rising exchange supply and team wallet outflows could intensify selling pressure, potentially driving PI prices downward.
Pi Network’s Trading Volume Collapses by Over 90%, Weakening Market Support
While the supply of PI coins on exchanges has surged, trading activity has sharply declined. CoinMarketCap data shows weekly trading volume for PI dropped from $5.4 billion in mid-May to under $500 million recently, a decline exceeding 90%. This drastic reduction in trading volume undermines market depth and liquidity, making the price more vulnerable to sharp declines if selling pressure intensifies.
One investor on X commented, “The strength and power to go up is gone with an always decreasing trading volume.”
Market analysts on social media platforms have noted that PI is at a critical juncture. The X account Pinetworkmember forecasted that PI’s price could either plunge to $0.1 or rebound to $1.7, depending on market dynamics and community response, though current indicators lean bearish.
Further downward pressure is expected from upcoming token unlocks, with approximately 337 million PI tokens scheduled for release within the next 30 days, according to COINOTAG analysis. This influx could exacerbate sell pressure and price volatility.
Community Sentiment Remains Resilient Despite Bearish On-Chain Signals
Despite the bearish trends in supply and volume, many Pi Network Pioneers remain focused on the Global Consensus Value (GCV) of $314,159 rather than current market prices. This strong community conviction is reflected in the majority of PI tokens—over 4 billion—remaining in Pioneer wallets rather than on exchanges.
Some community members have chosen to hold their PI tokens without selling, yet they are hesitant to increase their holdings until the Pi Core Team demonstrates clearer progress on project development and milestones.
This steadfast community support could prove pivotal in stabilizing PI’s price and fostering long-term growth, even as short-term market indicators signal caution.
Conclusion
Pi Network’s recent surge in PI coin supply on centralized exchanges combined with a dramatic drop in trading volume highlights increasing sell pressure and weakening market depth. Analysts caution that these factors, alongside imminent token unlocks, may drive PI’s price down to $0.1 in the near term. However, the strong commitment of the Pioneer community and the substantial portion of tokens held off exchanges provide a counterbalance that could influence future price stability. Investors and observers should closely monitor on-chain data and community developments as PI navigates this critical phase.
