Pi Coin faces significant selling pressure even as the broader market recovers and Bitcoin reaches new all-time highs.
The altcoin has struggled to capitalize on the market’s bullish trend, continuing its downturn despite new developments in the Pi Network ecosystem.
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Pi Coin Drops 24% as Bitcoin Surges to New Highs
As of the latest update, Pi Coin is priced at approximately $0.26, marking a 24% decrease over the past month, according to data from BeInCrypto.
This decline highlights an increasing disparity between Pi’s performance and that of major digital assets.
While many altcoins have surged along with Bitcoin, Pi has taken an opposite trajectory. This indicates that specific network factors, rather than the overall market sentiment, are influencing Pi’s current downturn.
A major factor is the increase in Pi tokens held on centralized exchanges (CEXs). Data from Piscan shows that exchange reserves recently surpassed 445 million PI, up from 420 million at the beginning of September.
This notable increase suggests that more holders are shifting tokens to trading platforms, which often signals impending selling activity.
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Adding to the challenges, over 110 million PI tokens are set to be released in October as part of the network’s unlock schedule.
This imminent supply increase, combined with high exchange reserves, adds potential downward pressure, hindering any short-term recovery.
While short-term sentiment remains pessimistic, Pi Network is making noticeable progress on its technology roadmap.
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The team recently unveiled various new testnet features, such as a decentralized exchange (DEX) and an automated market maker (AMM) integrated within the Pi Wallet.
These features enable users to experiment with token swaps, liquidity pools, and DeFi mechanics in a controlled testing environment without risking mainnet assets.
According to the development team, the goal is to prepare users for the future transition to the mainnet. The new tools facilitate direct peer-to-peer transactions within the wallet, empowering users to manage their assets more effectively.
This approach aims to diminish reliance on centralized exchanges, which have frequently proven to be weak links in the crypto space.
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In addition to the DEX, Pi has rolled out token creation capabilities on its testnet.
This upgrade allows developers to create tokens, build applications, and launch marketplaces directly within the Pi ecosystem, similar to how Ethereum’s ERC-20 framework fueled that blockchain’s initial expansion.
Pioneers are hopeful that such initiatives could signal a pivotal moment for Pi Network’s ecosystem strategy. They contend that the project’s emphasis on infrastructure, decentralization, and developer engagement aims to establish lasting value beyond mere speculation.
Ultimately, PI’s long-term success will hinge on whether these innovations translate into practical utility rather than being driven solely by short-term price fluctuations.
