Pi Coin Price Climbs Despite Supply Surge – The Hidden Wallet Behind the Pump

The Pi Coin price is up 6% today which makes it among top crypto gainers in what's otherwise a boring market. Current Pi price is around $0.65.

The price of Pi Coin is up 6% today which makes it among top crypto gainers in what’s otherwise a boring market. Current Pi price is around $0.65.

Analyst ‘Dr Altcoin’ has weighed in on the situation with Pi Coin price, providing insights into what appears to be contradictory market behavior.

Pi Coin: A Tale of Rising Price and Increasing Supply

The situation is unusual as the total circulating supply has reached 6.91 billion Pi coins, meaning more Pi is becoming available in the market. Logically, this would put downward pressure on the price. But instead of falling, the price is incrementally rising.

The explanation for this seemingly contradictory movement lies in the actions taken by the Pi Core Team. Their “Pi Foundation 2” wallet (address: GASWBDATCXXIUGHR7DWSFAAONZB2L5NFMBTDCYQQ2TQLRQNCTKJ2AODM) has been actively buying Pi directly from centralized exchanges, mainly OKX.

Within the last 24 hours alone, 27 million Pi coins were pulled from exchanges and moved into this sub-wallet. This is a significant move that essentially removes coins from the tradable supply.

Question:Why is the price of Pi increasing despite the circulating supply rising to 6.91 billion coins? Also, why is the available supply in CEXs decreasing even though more Pi is being unlocked?Answer:The Pi Core Team, through its Pi Foundation 2 wallet, has created a...

This move appears to be a price stabilization strategy by the Pi Core Team. By creating buy pressure and reducing sell pressure, they’re trying to absorb the impact of the unlocks that would otherwise dilute the price.

From a psychological standpoint, this intervention can send a bullish signal to retail traders, suggesting that the team is committed to maintaining a healthy price floor and managing token inflation.

However, if the Pi Core Team stops this buyback behavior while unlocking continues at the same pace, the exchange supply will rise again, and selling pressure may return, possibly dragging the price down. This tactic is only effective as long as they have the resources and willingness to keep it up.

This situation uncovers a behind-the-scenes price management strategy by the Pi Core Team that’s currently offsetting the inflationary effects of the growing circulating supply. It shows that price isn’t only driven by supply and demand fundamentals, but also by the actions of the teams behind these tokens, especially in low-liquidity, low-transparency ecosystems like Pi Network.

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