Ever since the launch of Pi network’s mainnet, there have been a lot of speculations regarding the actual potential of its native token $Pi. The optimists consider Pi to be an underdog cryptocurrency that is yet to see its full potential, while the naysayers label it as another massive ponzi scheme in the crypto world.
The Pi coin’s launch on decentralized exchanges saw its value surging to an all time high of $2.99 within 24 hours however, since then its price has dwindled over weeks.
One of the major criticisms of Pi network project is its ridiculously high end limit of 100 billion tokens, that serves as a roadblock to the token’s surge in value, concurring with basic economic principles of demand and supply.
When the crypto market was anticipating Pi coin to fall further- 35% to 50%, after it dropped nearly 20%, almost wiping out the maximum increase from the rebound of the historical low price of $0.38, it bounced back.
Currently, it is trading at around $0.6322, taking a support of $0.4023 level and close to its 50-day exponential moving average.
Analysts predicted the price will see a major decline due to increasing supply of Pi tokens in the market. Moreover, it was expected that the issuance of Pi coins will exceed 100 millions in this month and over 1.5 billion new tokens will be put into circulation, accelerating the downfall.
The crypto expert Dr. Altcoin also warned that if necessary steps aren’t taken by the Pi team to stop the increase in supply, the price could drop significantly. “Unless the PCT implements measures to stabilize the price, we could see Pi drop to around $0.30 in the coming months, before a potential recovery starting at the end of August 2025,” said Dr. Altcoin.
With a solid strategy, the Pi team succeeded in making a comeback and witnessing an upward trend in Pi price, without even halting its operations to raise the token supply.
However, it doesn’t align with demand and supply economics. Typically, when the token’s supply increases, it usually faces bearish pressure and vice-versa. But, in Pi’ case, things are totally different. The downward momentum halted, and buyers are showing interest. Why and how did it happen all of a sudden?
Pi Foundation’s Massive Transfers from Exchanges to Sub-Wallet
Involving a combination of market dynamics, project developments and speculative sentiments in the market and its community, the Pi core team has found an effective solution.
Dr. Altcoin, in this X post, has resolved the mystery. He explained that the Pi team has created a sub-wallet through is Pi Foundation 2 wallet “GASWBDATCXXIUGHR7DWSFAAONZB2L5NFMBTDCYQQ2TQLRQNCTKJ2AODM” that has been actively involved in buying Pi tokens directly from centralized exchanges, primarily OKX. This continuous purchase is absorbing the impact of newly unlocked tokens to centralized exchanges.
The wallet transferred approximately 39 million Pi tokens in the last three days. The wallet, transferring Pi tokens from exchanges to its sub wallet, is reducing the negative impact of excess token supply on the price of Pi. On April 19, within the past 24 hours, nearly 27 million Pi have been transferred from CEXs to this sub-wallet.
Pi network is that they have not kept any cap on the number of Pi tokens that will be available for circulation and it has a natural impact on Pi price. Currently, Pi’s circulating supply has surged to 6.93 billion tokens. And Pi’s market cap is $4.48 billion as on April 20, 2025, as per data from CoinGecko.
Also Read: Pi Network Unveils Mainnet Migration Roadmap
Conclusion
The cautious move is part of Pi core team’s broader strategy in which they are decreasing the surplus in the circulation of Pi tokens from the market by buying Pi coins. This strategy stabilizes the Pi price and reduces the selling pressure, visible on the Pi token’s technical chart.
However, how long this plan will work no one knows. It depends on the team’s continued willingness and resources to keep buying tokens from exchanges. If they stop buying, selling pressure could return, potentially lowering the price.
