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Highlights
- Pioneers locked 3,349,768 PI tokens for two weeks or more, which suggests long-term faith in the project amid price volatility.
- This came after Pi Network's mining rate was cut by 8% to its lowest ever, in a bid to stabilize the ecosystem.
- Pi Coin dropped to $0.32 on August 1, before recovering slightly to $0.3553.
Over 3.3 million PI tokens were voluntarily locked in a single day, according to the Pi Network activity. After lowering its mining rate and advising Pioneers to lock their tokens, the project team took this action.
Lockups Reflect Strong Faith in Pi Network’s Long-Term Vision
According to the latest community data, 3,349,768 PI tokens, around 0.13% of the circulating supply, have been locked for periods of two weeks or more. Pioneers appear unwilling to dump tokens they’ve mined over the years for prices under $0.4. Instead, many are betting that Pi Network will achieve meaningful real-world use.
These fresh lockups come at a critical time. The Pi Network recently reduced its mining rate by 8%, dropping from 0.0030165 π/h to 0.0027746 π/h, its lowest rate ever. In order to slow supply growth and preserve a more robust ecosystem during continuous market volatility, this step is being taken in conjunction with reminders for users to lock up their tokens.
Meanwhile, more than 19 million PI tokens went into circulation in the first three days of August. It extended a pattern from July, when over 72 million tokens were unlocked. The latest unlock event coincided with a sharp 13.75% daily drop to $0.35, as traders increased short positions, driving open interest in derivatives to around $30 million.
Price Pressure and Failed Transactions Highlight Challenges
Pi Coin started poorly in August, dropping to a new all-time low of $0.32 before it rose slightly to $0.36. The token now trades between $0.32 as the support level and $0.40 as the resistance level, and the market is still bearish.
Data from PiDoor shows that many transactions are failing, which adds to the network’s problems. About 102,604 out of 200,000 daily transactions failed, leading to a 53% failure rate. Additionally, the overall number of transactions has decreased from July to August, which might mean fewer users are engaging with the platform. Pi Coin price is currently trading at $0.3553, down 4.59% over the past day. The token is currently ranked 39th by market cap, which stands at $2.76 billion, down 4.56%.
Significantly, the number of daily unlocks has decreased from approximately 9 million PI to less than 5.9 million. As a result, fewer liquid tokens are coming into the market every day. According to analysts, if demand increases, this cut could lead to upward price pressure and help control inflation.
Bitget, a cryptocurrency exchange, is currently running promotions for pioneers who deposit Pi Network tokens. This is to increase liquidity and strengthen market support. According to some pioneers, the new lockups and network improvements might pave the way for a comeback.
As reported by Coingape’s Pi coin forcast , price is aiming a recovery due to formation of the expanding bollinger bands. Whales seem to be buying the dip as on-chain activity shows massive 350M pi coin purchase. One of the most renowned financial advisor and author of Rich Dad Poor Dad, Robert Kiyosaki has predicted a possible drop in Bitcoin as historically August has led to dip in crypto market.
Will this time be different? The market at the moment seems divided with multiple analysts including Arthur Hayes forecasting BTC Dip to sub $100k, such an event will lead to a fall in Pi Coin price as well. Hence, this might be a good time to wait and let the markets play out.
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