Pi Network’s $195 Billion Valuation Faces Liquidity Crisis , What Next For Pi Coin Price?

The post Pi Network’s $195 Billion Valuation Faces Liquidity Crisis , What Next For Pi Coin Price? appeared first on Coinpedia Fintech News

Pi Network’s highly anticipated mainnet launch quickly turned into a pump-dump show as its Pi token with a ranking of #3142 saw extreme volatility. Initially priced at $1.70, the price surged to $2.00 before crashing over 50% within two hours, now hovering around $0.6596, which is 66.56% lower than its ATH. Despite massive daily trading volumes exceeding $1.2 billion, liquidity concerns are casting doubts over its market’s long-term stability. However, there has been an increase in the trading volume by 479.60% in the last 24 hours. 

The Red Flags

Despite having a massive $195 billion valuation, Pi Coin is struggling with low liquidity. Exchanges don’t have enough liquidity to handle the massive number of Pi tokens being traded. Even OKX, the most liquid exchange, has a 2% market depth of just $33,000-$60,000. This means a $100,000 trade could cause big price swings, making the market highly volatile.

Moreover, Pi Network uses a smartphone mining system where users need an invitation to join. It also rewards referrals, making it look like an MLM scheme. This has drawn comparisons to tokens like SafeMoon, where early users gained the most. Since 2019, Pi Network has grown to 60 million users. Now that the mainnet is live, users can trade their tokens, but the lack of liquidity raises concerns about price stability.

Lock-Up Incentives—A Double-Edged Sword?

To counter selling pressure, Pi Network is offering a token lock-up program where holders can lock their tokens for up to three years in exchange for higher mining rewards. However, this strategy mirrors that of HEX, a controversial project that lost over 99% of its value from 2021 to 2024, leaving many locked tokens worthless. 

Will Binance and Coinbase Listings Boost PI?

Despite the early setbacks, some market analysts remain optimistic about Pi’s potential. Crypto exchanges like OKX and CoinDCX have already listed Pi, and there’s a push to get it listed on major platforms like Binance and Coinbase. If these exchanges support Pi, increased liquidity and credibility could drive a price recovery.

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Pi Community is not Happy

Following the rapid price swings, some long-term Pi supporters are not happy. Crypto commentator LightYear criticized the launch, stating that new buyers got easy access to tokens that early users spent years earning. This shows that people worry the listing has gone against Pi’s main idea of rewarding users for their time and effort.

While the future of Pi remains uncertain, all eyes are on whether major exchange listings can stabilize its price and bring back investor confidence.

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