What happened?
Pi Coin is experiencing significant sell pressure due to a large number of daily token unlocks, currently in the tens of millions. The supply of Pi Coin is surpassing demand, leading to a 15% price drop and making it one of the biggest losers on the weekly chart. Moreover, $228.5 million worth of Pi tokens are set to be unlocked over the next 30 days, which continues to contribute to its declining price.
Who does this affect?
This situation mainly affects Pi Coin holders and potential investors interested in purchasing Pi Coin. Current holders may face losses as the token’s value continues to decrease amid high supply and low demand. Prospective investors might be cautious about investing in Pi Coin due to its current volatility and limited utility within the ecosystem.
Why does this matter?
The market impact of Pi Coin’s struggles reflects broader concerns about cryptocurrency stability and market trends. As Pi Coin remains excluded from the “best crypto to buy” list, it highlights the importance of demand growth and utility in maintaining cryptocurrency prices. The persistent downward pressure and macroeconomic factors could lead investors to seek more stable or utility-driven cryptocurrencies, potentially shifting market dynamics.