A recent post by crypto analyst Dr Altcoin sheds light on long-term prospects for Pi Network, emphasizing the need for infrastructure development and real-world use cases.
Lack of Real-World Use Cases
Dr Altcoin pointed out that for Pi Network to succeed, it needs to establish real-world use cases in partnership with existing businesses and services. Without practical utility, the token's price will lack sustainable value.
PI Price Volatility
The crypto analyst also highlighted the instability of PI's price, which represents a significant hurdle to mass adoption. He provided data on sharp price fluctuations, including a 2902% increase within six days after the Open Mainnet launch and a fall of over 81% shortly thereafter.
Concentration of Token Holders
Dr Altcoin noted that about 95% of Pi users hold less than 1,001 tokens. This creates a barrier for the token's utility growth, as the price must rise for smaller balances to have real value.
In conclusion, Dr Altcoin emphasizes that for successful widespread adoption of Pi Network, time and trust are needed. Given the existing user base and the development team, the project holds potential for further growth.
