The Pi Network is facing a concerning situation with a sharp rise in token reserves, exceeding 420 million PI, coupled with low daily trading volumes.
Surge in Reserves
The Pi Network has experienced a significant increase in exchange reserves, now surpassing 420 million PI. This surge is linked to substantial monthly unlocks, raising fears of oversupply and potential price instability.
Lack of Comments from Leadership
The absence of remarks from Pi Network's leadership, including founder Dr. Nicolas Kokkalis, adds to the concerns. Ongoing monthly unlocks continue to put selling pressure on the market, resulting in sharp price drops.
Market Under Pressure
The immediate impact is particularly evident in the PI token market, where prices have plummeted over 85% from the year's highs. The risks of further price declines remain high due to low liquidity and minimal trading volumes, with analysts noting that 'Pi’s structural oversupply and concentration risk are causing sharp price drops.'
While the broader cryptocurrency market remains unaffected for now, PI holders face significant risks due to concentrated token ownership, potentially leading to further market shocks.
