The reason why Pi coin is falling towards 0.40 USD has been found: 3 major core issues remain unresolved, and user sell-off pressure is increasing.

The on-chain data for Pi Network in July seems to contradict the expectations of the pioneers. Although the pioneers hoped that the latest update from the Pi core team would drive demand, the reality shows that selling pressure is increasing. The most obvious evidence is the continuous increase in the amount of Pi transferred to centralized exchanges throughout July. The price of Pi coin continues to face downward pressure, even falling below the lowest level since its listing at 0.4190 USD. What core issues remain unresolved that are causing users to experience increasing selling pressure?

(Source: Gate)

Centralized Exchange holdings surge, but trading volume continues to be sluggish

At the beginning of this month, BeInCrypto reported that the number of Pi on the exchange has reached a record 370 million. According to data from Piscan, by the end of July, this figure has exceeded 405 million PI, an increase of nearly 10%. This number may further grow in August, as an additional 161.6 million PI will be unlocked and enter circulation.

However, in stark contrast to the surge in exchange holdings, the trading volume of Pi has remained persistently sluggish. Data from CoinMarketCap shows that Pi's 24-hour trading volume remained below 100 million dollars for most of July. In comparison, Pi's daily trading volume in May ranged from 500 million dollars to over 2 billion dollars. This indicates that despite more Pi entering the exchange, there is not enough buying pressure to support its price, resulting in continued downward pressure on Pi's price throughout the month.

The 3 Core Issues Facing Pi Network

Recently, the famous Pi advocate Kim H Wong emphasized two main issues hindering the development of the Pi network, while NoOnes CEO Ray Youssef also expressed similar views. Overall, the Pi Network faces the following three core problems:

  1. Lack of practical use decentralized applications (dApp): Kim H Wong pointed out that there are very few, if any, decentralized applications (dApp) on the Pi Network that support barter or exchange of actual goods and services. This severely limits the practical use of Pi coin, reducing the motivation for users to hold Pi coins. Ray Youssef also emphasized that Pi has only successfully attracted users, without providing meaningful utility.

  2. User Pi coin liquidity is limited: Most users' Pi coins will be locked once transferred to the wallet. This reduces the flexibility and utility of Pi coins, having a negative impact on the overall development of the network. Kim H Wong believes that the solution is to open available applications as soon as possible and to carry out the second Pi migration as soon as possible.

  3. Insufficient developer participation and lack of technical transparency: Ray Youssef believes that the anonymity of the Pi Network leadership team and the lack of technical transparency may hinder developer participation. He pointed out: "Pi has succeeded with consumers—millions have mined the coin. But what about developers? That stable market is quite weak." Without active participation from developers and technical promotion, even significant upgrades cannot generate bullish momentum.

The utility of the ecosystem is the key to Pi's long-term value

The project has launched several noteworthy updates in the past month, including the introduction of the "Buy Pi" feature (allowing users to purchase Pi with fiat currency), Pi App Studio, and ecosystem directory staking. However, these efforts are still insufficient to trigger a price rebound.

Ray Youssef believes that the issue lies in who delivers the message. "In blockchain, developers are your safety net. They act as guarantors of token prices." He explained that individual users can drive mass adoption, but developers are the key factor in protecting token prices through ecosystem support and technical advancement. He compared this to the early success of Ethereum, emphasizing how Vitalik Buterin actively interacted with developers to build a technical community that validates every upgrade and establishes long-term trust.

Conclusion:

Pi coin has fallen close to its historical low, reflecting the severe challenges it faces in terms of practical use, user liquidity, and developer engagement. Although the core team of Pi Network continues to roll out updates, if these core issues cannot be effectively addressed, user selling pressure will persist, making it difficult for the price of Pi coin to escape the downtrend. The construction of ecological utility and the developer community will be key to the long-term value realization of Pi Network.

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GateUser-02f47ab8vip
· 23h ago
Just go for it💪
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GateUser-b782b334vip
· 08-01 03:11
Just go for it💪
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