The Pi Network IOU token (PI) has seen a significant value decrease in recent weeks due to the prevailing bearish market. At the time of writing, Pi Coin (PI) was valued at $34.53, 2.46% less than the previous month and 73% less than this year's highest value.
Current State of Pi Network IOU
The Pi IOU token was launched in 2022 and is unrelated to the main Pi Network; it is currently listed on only a few exchanges with low trading volumes. As a result, its price does not indicate the direction of the primary Pi token.
Overall Weakness in the Crypto Market
A decrease in the IOU price of Pi is similar to the fluctuations in the rest of the crypto market. Bitcoin has fallen over 20% from its peak this year, while Ethereum is down by more than 38%. This broad market weakness has occurred simultaneously with a decline in the crypto fear and greed index, which dropped from an “extreme greed” score of 90 in March to a neutral value of 42.5.
Reasons for the Token's Decline
Trading volumes for cryptocurrencies on both centralized and decentralized exchanges dropped significantly in August. The Pi Network IOU’s decline is compounded by delays in the Pi Network’s mainnet launch. Developers planned to move the mainnet from its enclosed phase later this year, but they still need to finish KYC verification, add at least 100 dApps, and ensure market conditions are favorable. In addition, other tap-to-earn tokens, like Hamster Kombat and Notcoin, have also seen significant price drops, reflecting the challenging environment for similar projects.
Despite its innovative approach, Pi Network’s IOU token faces considerable hurdles before it can gain traction.
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