Pi Network Defies Migration Milestone with Unexpected Price Drop – What’s Behind the Slump?

Pi Network’s price takes a nosedive—just as its migration hits a major milestone. Progress isn’t always profitable.

The irony of blockchain adoption

While Pi’s team celebrates migration progress, traders are left scratching their heads. The token’s value tumbles despite bullish fundamentals—classic crypto contradiction.

A cynical trader’s take

Another day, another ‘revolutionary’ project failing to pump on good news. Maybe the market’s finally wising up to hype cycles—or maybe Pi holders are just early (again).

TLDR

• The Pi Network successfully launched its migration phase on July 1 as part of its Open Mainnet transition.
• Over 75 million Pi tokens have been migrated since July 1 with a total estimated value of more than $37 million.
• The Pi Network price has declined despite strong user activity and ecosystem progress.
• A massive token unlock of over 200 million Pi tokens in July is contributing to downward price pressure.
• The expanding token supply and absence of deflationary mechanisms are weakening market confidence.

The Pi Network has achieved a major technical milestone with its migration progress, yet the Pi Network price continues to decline. On July 1, the network entered its Grace Period, encouraging users to complete KYC and wallet updates. However, the Pi Network price has dropped NEAR historic lows, even as user activity and token migration grow rapidly.

Pi Network Price Dips Despite Migration Progress

The network began its Grace Period on July 1, aligning with its broader Open Mainnet preparations. Pi Network urged users to complete KYC and Mainnet migrations within a timeline to ensure eligibility for upcoming features. This transition phase supports the platform’s readiness for dApps and full ecosystem integration.

As announced on Pi2Day, the 6-month Grace Period, essential for preparing PI for Open Network, began on July 1. Pioneers must complete their KYC and Mainnet migration within specific deadlines defined by the Grace Period, which includes flexibility to accommodate Pioneers who are… pic.twitter.com/E7SfZ5kuwL

— Pi Network (@PiCoreTeam) July 12, 2024

On July 8 alone, over 16.8 million Pi tokens were migrated, representing a value of $7.9 million. In total, more than 75 million Pi have been transferred since July 1, surpassing $37 million in value. The figures reflect heightened user participation, showing that the Pi community is preparing for broader utility.

Despite strong participation, the Pi Network price has failed to respond positively to these ecosystem updates. The price remains significantly below earlier levels, reflecting market hesitancy even as development progresses. While users follow protocol milestones, Pi Network price sentiment shows continued weakness.

Increased Token Supply Adds Price Pressure

The Pi Network price decline is tied to a sharp rise in token circulation caused by mobile mining rewards. As tokens become more widely distributed, supply growth has outpaced demand, leading to price instability. The platform’s lack of deflationary features like token burns intensifies downward movement in valuation.

A major contributing factor is the expected unlock of over 200 million Pi tokens during July. On one day alone, 10.1 million tokens are set to be released into circulation. This anticipated influx has triggered concerns over additional sell-offs, increasing market pressure on the Pi Network price.

Without mechanisms to control inflation, the rise in supply continues to affect the Pi Network’s price performance. Even though user metrics are rising, token availability is dampening buying sentiment across the market. This supply-demand imbalance remains a key obstacle to price recovery.

Market Trends and Sentiment Remain Unfavorable

While the broader crypto market sees upward momentum, the Pi Network price has declined 19% over the past month. Bitcoin has reached a new all-time high, yet Pi Coin trends in the opposite direction with weak weekly growth. As of now, Pi Coin trades at $0.4695, barely recovering from earlier lows.

Analysts attribute the underperformance to the network’s inability to spark buying interest during major events. Pi2Day, the Grace Period announcement, and migration progress failed to lift the Pi Network price. The disconnect between development and price continues to unsettle the community.

Despite community optimism, the Pi Network price remains under selling pressure amid ongoing technical advances. Until the supply stabilizes or demand rises, the price outlook may continue to lag behind the platform’s progress.