Pi Network Faces Token Unlock Pressure as 668M Tokens Threaten to overwhelm Market Demand

Crypto project Pi Network is quickly running out of time to salvage its token from the threat of a massive sell-off that could be triggered by a record token unlock and thinning liquidity, Together V defi review.

The project, which began in 2019, has seen its token, Pi, steadily lose value since its May launch price of $0.34. Now trading at $0.66, Pi has slid 50% from its July highs.

That downturn could worsen in the months ahead as a record period of token unlocks threatens to overwhelm market demand and send prices spiraling downward.

Here’s a closer look at the key indicators that could decide if Pi survives the next stage of its journey.

Token unlocks set to outpace prior periods

Data from blockchain analytics firm PiScan shows that a total of 668 million Pi tokens are set to be unlocked in the second quarter of 2024.

That figure dwarfs any prior period of unlocks, with the next highest total being the 500 million tokens set to unlock in the fourth quarter of 2026.

The main period of token unlocks is set to begin in May and continue through July.

At the same time, the amount of Pi tokens held by centralized exchanges has soared in recent months, suggesting many holders are preparing to sell their tokens.

According to PiScan, the total balance of Pi on exchanges has now surged past 387 million. That’s a threefold increase from the 100 million tokens held on exchanges in January.

Among exchanges, Bitget and OKX are the main platforms holding Pi, with the two exchanges together controlling more than 60% of the exchange-held tokens.

Drying up trading activity

Together, these figures point to a potential surge in Pi sell-side pressure, which could be problematic given the fact that trading interest has been waning.

Data from CoinGecko shows that daily Pi trading volume has plunged 96% from its launch highs. At its peak, Pi’s daily trading volume was $1.3 billion, but that figure has since fallen to just $45 million.

The rapid decline in trading volume comes at a time when a record period of token unlocks is set to begin, signaling that buying interest is drying up just as supply is about to flood the market.

Despite these warning signs, optimism remains high among Pi’s most devoted supporters.

Unverified claims that Binance may soon list Pi have helped to keep some enthusiasm alive among the project’s community.

Meanwhile, the anticipated appearance of Pi founder Nicolas Kokkalis at Consensus 2025 has also been a key talking point among Pi supporters on social media.

Earlier this year, Pi also announced integrations with Chainlink and Telegram’s crypto wallet, which are being seen as steps toward building broader utility for the project.