Why Is the Pi Network (PI) Price Down 40% in the Past 4 Days?

TL;DR

• PI dropped from nearly $3 to $1.72, possibly due to Binance’s inaction despite 86% community support for a listing.

• Some predict a rally above $4, while extreme targets like $314.159 seem unrealistic given PI’s massive required market cap.

PI Heads South

The native token of Pi Network saw the light of day on February 20, almost six years after the birth of the project. The asset was at the forefront of gains during its first trading days, rising to almost $3 on February 27. 

Since then, though, PI has been on a substantial decline, reaching a local bottom of $1.52 on March 2 and currently standing at around $1.72 (per CoinMarketCap’s data).

One possible factor contributing to the asset’s poor performance lately could be Binance’s intervention, or more precisely, its lack of action. In February, the biggest crypto exchange held a community vote to determine whether its users would want to see PI available for trading. The results became official on February 27, with over 86% of the voters clicking the “yes” option. 

Despite the overwhelming support, Binance has remained silent on the matter, and PI is not currently available on the platform. 

A potential listing would increase the token’s liquidity and accessibility and might create upward pressure on the valuation. Some of the leading crypto exchanges that have already allowed trading services with PI include Bitget, OKX, and MEXC. 

What Might be Next?

Contrary to the recent price decrease, many industry participants remain optimistic that the coin’s valuation could soar to impressive levels in the near future. The X user GEM HUNTER assumed that a breakout above $1.85 could trigger a price rally to above $4. 

Prior to that, some community members envisioned a spike to $3.14 and even $314.159 – numbers symbolically linked to π (Pi) ≈ 3.14159. 

It is worth mentioning that the second target would require PI’s market cap to explode above $2 trillion (assuming the circulating supply is the 6.8 billion coins stated by CoinMarketCap). The current capitalization of the entire cryptocurrency market is roughly 3.15 trillion, making the forecast highly implausible.