The Pi Network is making headlines again, but this time it's for a major event that could impact the future of its cryptocurrency.

2.8 million PI tokens are being unlocked into circulation today, following a schedule of unlocks that will see more than 1.5 billion tokens enter the market

Pi Network, the cryptocurrency project that has been making headlines for its initial gains and subsequent setbacks, is set for another major event today. After a schedule of unlocks that saw more than 1.5 billion tokens enter the market, 2.8 million PI tokens are being unlocked into circulation.

The token release will continue throughout the year, with April expected to bring the largest unlocks of 108.9 million PI tokens, according to PI Scan, a real-time blockchain explorer. The smallest unlocks of about 2.8 million PI tokens are expected to occur in May, June, and July, while December will see the release of 432 million tokens.

This adds to the 6.88 billion PI tokens that are already in circulation, currently valued at around $0.6174. At the beginning of the year, when Pi was first introduced, the token began trading at $0.1071. In a matter of days, the price surged by over 2,600%, reaching a peak of $3.00 in late February.

However, the token quickly lost steam, and by April 4, its price had fallen by 81.58%, highlighting the highly volatile nature of Pi’s early price movements.

After the initial surge, the price of Pi has fluctuated between $0.4040 and $0.7894, with some recovery observed in recent weeks.

Token unlocks in the cryptocurrency world are always met with mixed reactions. On one hand, they can be seen as a sign of progress and maturity for a project, allowing for greater liquidity and transparency. In Pi’s case, the release of tokens today could be viewed as part of a long-term plan for building a more robust ecosystem and network.

On the other hand, token unlocks can often result in price dips. The added supply can overwhelm market demand, particularly if investors who have been holding tokens decide to sell off as they are unlocked.

This situation is further complicated by the fact that Pi Coin’s community remains divided on the project’s long-term prospects. Some investors are hopeful that the Pi Network will continue to grow and attract greater utility, thereby justifying the increase in token supply.

Others remain more cautious, viewing the frequent token unlocks as a risk of dilution. As the number of circulating tokens increases, each token becomes slightly less valuable unless there’s a corresponding increase in demand.

Looking forward, there’s still a lot of uncertainty regarding the future price movements of Pi Coin. In May, June, and July, Pi Network will release another 190 million, 226 million, and 233 million tokens respectively.

These periodic unlocks are sure to continue placing pressure on the price, especially if there’s a lack of institutional interest or a failure to develop practical use cases for Pi Coin in the broader market.

For Pi Network to maintain or grow its price, it will need to demonstrate sustained adoption and use, both by its community and by external players in the cryptocurrency ecosystem. The release of tokens alone is not enough to justify long-term growth if there isn’t a clear path toward a broader market or utility.