In the last two days, Pi Network's price has dropped almost 20%

In the last two days, Pi Network's price has dropped almost 20%, shedding almost the maximum gain it made after surging back from its lowest-ever price of $0.38.

In the last two days, the price of Pi Network (PI) has dropped almost 20%, losing almost all of the gains it made after surging back from its lowest-ever price of $0.38. Currently, Pi is trading around $0.61, which is nearly 400% lower than its all-time high.

However, some experts believe that the price of Pi Coin could fall even further, maybe by 35% to 50%. Here's why.

Popular crypto expert Dr. Altcoin says that Pi Coin is now on the verge of falling even further, perhaps 35% to 50% lower than where it is valued today. According to him, the main reason for this potential price drop is that too many new Pi tokens are being released into the market.

This month alone, over 100 million Pi coins will be released, and throughout the year, more than 1.5 billion new coins will come into circulation. With such a massive influx of tokens and not enough buyers in the market to absorb them, the price might continue to decline.

Dr. Altcoin further warns that unless the Pi Core Team does something to mitigate the increasing supply, the price of Pi Coin could plummet all the way down to $0.30 in the next few months.

This aligns with the basic principles of supply and demand. When the supply of an asset increases while the demand remains low or decreases, it leads to a decrease in price. In this case, we're talking about a cryptocurrency, and the scenario unfolds as follows:

As the supply of Pi Coins increases with the unlocking of new tokens and the addition of 1.5 billion coins to the market this year, the demand for the coin might not keep pace. This is partly due to Pi Coin not being listed on major cryptocurrency exchanges like Binance or Coinbase, making it difficult for most users to purchase the coin.

To support the price of Pi Coin, some experts suggest that the Pi Foundation could burn some of the tokens to reduce the supply. Currently, the team holds over 70 billion Pi coins, and burning even a small portion could help in supporting the price.

Another idea is to burn some of the transaction fees that are being collected from Pi's app ecosystem, similar to how other blockchain projects, such as Binance Smart Chain, burn a portion of the transaction fees to reduce the circulating supply and potentially increase the token price.