Pi Coin (PI) Drops Below $1 Mark, Raising Concerns Among Investors

Pi Network’s native cryptocurrency, Pi Coin (PI), has experienced a major drop in value, falling below the $1 mark.

Pi Network’s native cryptocurrency, Pi Coin (PI), has seen a significant decline in value, falling below the $1 mark. According to the latest market data from Binance, Pi experienced a major setback, dropping by 18% in the last 24 hours to reach $0.87. If the coin fails to maintain the $0.95 support level, further declines could push it to lows of $0.87. Conversely, a shift in sentiment could see it rise back to $1.34 and beyond, but bulls face a difficult challenge to regain momentum.

Several factors have contributed to Pi Coin’s sharp decline in value, and the situation has left investors scrambling for answers. A factor behind the downfall is the delay in listing the coin on major exchanges like Binance and Coinbase. Both platforms previously teased the possibility of listing PI, sparking speculation and optimism among investors. However, the failure of these listings to materialize has dampened sentiment, leading to a drop in demand for Pi Coin. The lack of official exchange listings has left many to question the coin’s future and viability in the broader market.

Moreover, Pi Network has not formally announced a coin burn, but the supply of Pi is steadily shrinking. Several mechanisms have contributed to this decrease. Firstly, the platform introduced a new feature called "pay with Pi," enabling users to make payments using the coin for goods and services. This integration into the real economy could increase spending and, consequently, decrease the coin’s overall supply.

Secondly, Pi Network has been rolling out several updates and engaging in community management activities, aiming to increase user activity and engagement. As users participate in more tasks and contribute to the ecosystem, the platform reduces the token's circulating supply through burning or other deflationary methods. This strategy is intended to create scarcity and potentially increase the coin’s value.

The drop in Pi Coin’s value has sparked widespread fear, uncertainty, and doubt (FUD) in the market. According to the crypto news outlet, Sentiment Tab, sentiment towards Pi has worsened by 80% within a single day. Some users on X (formerly Twitter) are even claiming “manipulation” and “panic” selling, further dampening the mood. In addition, trading volume has decreased by 37%, signaling a reduction in market activity.