Pi Network Struggles With Liquidity Crisis as Exchange Reserves Hit 405M PI

Pi Network's structural vulnerabilities are becoming increasingly apparent as exchange deposits continue to outstrip market demand. Centralized platforms now hold over 405 million Pi tokens—marking a 10% increase in July—while daily trading volume remains subdued below $100 million. This supply-demand imbalance has driven PI's price to a historic low of $0.419.

Despite implementing fiat onboarding options and ecosystem staking mechanisms, PI Network fails to stimulate meaningful network activity. 'Features alone can't create demand,' notes a market analyst. 'The lack of functional dApps creates a chicken-and-egg scenario—developers won't build without users, and users won't come without compelling use cases.'

The project faces a crucial test with August's scheduled 161.6 million token unlock. Analysts highlight a concerning disconnect: while rising exchange balances typically indicate anticipated trading activity, Pi's order books show no corresponding liquidity depth. This anomaly suggests holders may be preparing to exit rather than engage with the ecosystem.