Whales Lock Over 3.3 Million Pi Tokens as Network Encourages Long-Term Holding
In a significant show of confidence, Pi Network users voluntarily locked over 3.3 million PI tokens in a single day. This move follows the project’s recent decision to reduce its mining rate and encourage users, known as Pioneers, to commit their tokens for longer durations. The Pi Network team has positioned this strategy as a way to stabilize the ecosystem and promote long-term value creation.
Community Commitment Signals Belief in Pi’s Future
Recent data reveals that 3,349,768 PI tokens, representing approximately 0.13 percent of the circulating supply, have been locked for periods of two weeks or longer. Many Pioneers appear reluctant to sell their mined tokens at current market prices below $0.40. Instead, they are choosing to hold, anticipating that Pi Network will eventually deliver real-world utility and broader adoption.
This wave of lockups comes at a pivotal moment. The Pi Network recently implemented an 8 percent reduction in its mining rate, lowering it from 0.0030165 π/h to 0.0027746 π/h. This marks the lowest rate in the network’s history and is part of a broader effort to slow token inflation and maintain ecosystem health amid ongoing market volatility.
Price Volatility and Network Struggles Persist
Despite the positive sentiment from long-term holders, Pi Coin has faced considerable price pressure. The token dropped to a new all-time low of $0.32 earlier in August before recovering slightly to $0.36. It currently trades between $0.32 and $0.40, with bearish momentum still dominating the market.
Adding to the challenges, transaction data from PiDoor shows a high failure rate. Out of 200,000 daily transactions, over 102,000 failed, resulting in a 53 percent failure rate. The total number of transactions has also declined from July to August, suggesting reduced user engagement. Pi Coin is now priced at $0.3553, down 4.59 percent in the past 24 hours, with a market cap of $2.76 billion.
Market Outlook Remains Uncertain Amid Mixed Signals
Bitget, a leading crypto exchange, is currently offering incentives for users who deposit Pi tokens, aiming to boost liquidity and market support. Meanwhile, technical indicators such as expanding Bollinger Bands suggest a potential recovery. On-chain data also shows a massive 350 million Pi coin purchase, indicating whale accumulation.
However, broader market sentiment remains cautious. Financial author Robert Kiyosaki has warned of a possible Bitcoin decline in August, a historically weak month for crypto. Analysts like Arthur Hayes have even forecasted a dip below $100,000 for Bitcoin, which could drag Pi Coin down further.
With mixed signals across the board, many investors are choosing to wait and observe how the market unfolds.
It’s important to note that cryptocurrency remains an unregulated digital asset, not recognized as legal tender, and is subject to market risks. The information provided should not be considered financial or trading advice. CryptoNow holds no responsibility for any investment decisions made based on the content of this article.
