Pi Network price nears all-time lows as token unlocks increase supply

The price of Pi Network’s (CRYPTO:PI) native token, PI, is approaching its all-time low amid mounting supply pressures caused by significant token unlocks.

This decline coincides with the unlocking of over 126.6 million PI tokens this month, representing nearly 1.87% of the circulating supply.

Since the February launch of Pi Network's mainnet, the project has faced challenges in stabilising its token value.

The network has already unlocked 4.9 billion PI tokens, with an average monthly release of 133 million tokens.

Analysts attribute the price decline to a mismatch between supply and demand

Alex Obchakevich, founder of Obchakevich Research, explained that "monthly unlocks exceed demand," which places downward pressure on the token's value.

Despite these challenges, Pi Network continues to attract attention for its unique mobile-first blockchain model that allows users to mine tokens via daily check-ins on their smartphones.

However, critics argue that the project has struggled to convert its innovative approach into sustained market value.

Since peaking at $2.99 in February, PI has dropped nearly 70%, reflecting investor skepticism and persistent sell pressure.

The unlocking events have also raised concerns about liquidity management within the ecosystem.

While some analysts believe that increased supply could eventually lead to greater adoption and utility, others warn that insufficient demand within Pi Network's ecosystem may hinder price recovery.

Obchakevich suggested that the network should focus on expanding its use cases and increasing user engagement to stabilise its market position.

"The project has potential but must now concentrate on development to remain competitive," he noted.

Amid these developments, Pi Network remains a polarising topic within the cryptocurrency community.

While some see it as a promising platform with long-term potential, others question its ability to deliver meaningful value in a highly competitive market.

At the time of reporting, the Pi Network (PI) price was $0.6685.