Pi Network Struggles with Declining Momentum: What’s Behind the Drop in Price and Volume?

The Pi Network, once one of the most hyped projects in the crypto space, is facing significant challenges as both its price and trading volume experience a noticeable decline. As of May 6, 2025, Pi Network’s PI token is struggling to maintain any upward momentum, with trading volume falling by over 35% in the past 24 hours. This downturn marks a continuation of a trend that has seen the token lose significant value from its all-time high.

Pi Network’s journey from a highly anticipated project to a struggling crypto asset has caught the attention of investors and analysts alike. Let’s explore the reasons behind the declining price action and dwindling trading volume, and examine what might be in store for Pi Network in the coming months.

Pi Network’s Struggling Price Action: A Closer Look at the Numbers

PI Token Price Falls 80% from Its Peak

At the time of writing, Pi Network’s PI token is trading at $0.59, a stark contrast to its peak price of $2.99. This represents an 80% decline from its all-time high. The token has also experienced a 11.4% drop over the past month, with further declines of 3.3% in the past week and 0.1% over the last 24 hours.

This ongoing price drop reflects a broader trend of diminishing interest in Pi Network’s token, as market sentiment grows increasingly negative. Despite the network’s initial success in attracting millions of users, the lack of sustained demand and ongoing challenges in its ecosystem are contributing to the PI token’s poor performance.

Declining Trading Volume: A Sign of Fading Market Confidence

Pi Network’s trading volume has seen a dramatic 35% drop in the last 24 hours, now sitting at just $46.8 million—a sharp decrease from the over $800 million seen when mainnet trading began. This massive drop in volume is a strong indicator of waning interest in the PI token, especially given the previously high levels of activity surrounding the project’s launch.

The low trading volume is a concern for investors and market participants, as it signals reduced liquidity and an overall lack of momentum for the token. Combined with the diminishing price action, this suggests that Pi Network may struggle to regain investor confidence anytime soon.

The Tokenomics Pressure: Supply Overhang and Potential Decline

Imminent Token Unlocks Could Further Weigh on Price

A key factor contributing to Pi Network’s price struggles is the supply pressure caused by the upcoming unlock of 231 million PI tokens in May 2025, followed by another 222 million tokens in June. Over the next year, more than 1.4 billion PI tokens, worth over $850 million, are set to enter circulation.

This influx of new tokens could exacerbate the downward price pressure if demand fails to keep up. With supply increasing while demand remains tepid, Pi Network faces a serious risk of further price declines, especially in the absence of new liquidity outlets and strong institutional interest.

Lack of Major Exchange Listings Limits Liquidity

Currently, PI token is not listed on major exchanges like Binance and Coinbase, which are key platforms for driving liquidity and market activity. While Pi Network is available on exchanges such as OKX, Bitget, and MEXC, the absence of top-tier listings has hurt the token’s ability to attract institutional investors and broader retail interest.

Setbacks like BitMart’s trading pause and HTX’s delisting have further undermined confidence in the Pi Network’s market potential. Without access to the largest trading platforms, Pi Network struggles to reach a wider audience and establish itself as a legitimate asset in the crypto space.

Operational Issues: Delays and User Frustration

Know-Your-Customer (KYC) Verification Bottleneck

In addition to tokenomics concerns, Pi Network is also grappling with operational issues that have hampered its growth. Delays in the KYC verification process have been a significant bottleneck, leaving millions of users waiting for their accounts to be fully verified. While Pi Network released an update on May 2, allowing verified users to activate mainnet wallets without full migration, many users still face frustration due to the incomplete migration process.

The KYC delays are contributing to user dissatisfaction, which in turn impacts the broader ecosystem and limits the network’s ability to expand. A smooth and efficient onboarding process is critical for any blockchain project, but Pi Network’s current operational hurdles appear to be a drag on its long-term prospects.

Development Roadmap: Can Pi Network Bounce Back?

New SDK and On-Chain Activity May Provide a Glimmer of Hope

Despite the ongoing challenges, there are some positive developments on the horizon for Pi Network. The project is expected to release a full SDK (software development kit) by June 2025, which could pave the way for the development of third-party decentralized applications (dApps). This is a critical step toward boosting on-chain activity and making Pi Network more than just a speculative token.

If the SDK is successful in encouraging dApp development and fostering ecosystem growth, it could help revitalize the network and provide a reason for investors to return. However, it remains to be seen whether this development will be enough to counteract the current downward trend in price and volume.

Technical Analysis: Navigating the Current Market Conditions

Resistance Levels and Short-Term Outlook

From a technical standpoint, Pi Network’s PI token has been trading sideways just below the $0.60 resistance level. Momentum indicators show mixed signals, with the relative strength index (RSI) sitting at 40.87—indicating a weak market but not one that is oversold. This suggests that Pi’s price may continue to hover near the current level for the time being.

The immediate resistance lies around $0.62, and a short-term recovery to $0.67 could be possible if the price manages to break above this key level. However, with the significant supply pressure from the upcoming token unlocks and the lack of institutional interest, there’s a strong likelihood that Pi Network may continue to face downward price movement.

The Possibility of New Lows

If the price fails to break above the $0.62 resistance, it could drop below $0.56, testing new lows. As more tokens enter circulation and supply increases, further price declines seem likely unless there is a sudden surge in demand or positive market catalysts.

The Road Ahead for Pi Network

Pi Network is currently at a crossroads. With dwindling trading volume, falling prices, and operational issues dampening investor sentiment, it faces significant challenges in reclaiming its former glory. However, the upcoming SDK release and potential dApp development offer a glimmer of hope for the network’s future.

In the short term, Pi Network’s future remains uncertain, and unless it can overcome its supply and liquidity issues, it is likely to remain trapped in a downward price cycle. For investors, the next few months will be crucial in determining whether Pi Network can evolve beyond its current struggles or fade further into obscurity.

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