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The Pi Network (PI) saw a staggering drop in its value, plummeting by 92% to $0.2130 from its all-time high. This significant decrease occurred despite recent noteworthy announcements by the project. Back in May, a $100 million ecosystem fund was announced with the aim of supporting initiatives within the network. However, five months on, there has been no disclosure on which projects have benefitted from this fund.
New Funds and Weak Performance
Recently, the Pi Core Team introduced the Pi AI Studio platform. The intention of this initiative is to enable developers to create AI-based tools and operate them on the Pi network. Additionally, the network is gearing up for a major technical upgrade to align with Stellar ‘s Protocol 23 update. This enhancement is set to introduce features such as parallel processing and unified event architecture.
Despite these technological advancements, they failed to support the price. Sweden’s Valor Pi Fund managed to attract only approximately $5,000 in investment over two months. Furthermore, the testnet developed to experiment with decentralized exchange (DEX) and automated market maker (AMM) systems did not garner the anticipated interest.
Experts point to several potential catalysts for the recovery of Pi Network’s price. Firstly, being listed on major exchanges like Coinbase , Binance , or Upbit could mark a crucial turning point for PI. Historically, cryptocurrencies tend to gain significant value following such listings, with the Upbit listing particularly expanding access for South Korean investors.
Secondly, the prospect of token burning is on the agenda. A similar process, recently executed with the OKB token, saw its supply capped at 21 million, resulting in a price surge of over 200% within days. A similar burn for Pi Network could balance the effects of millions of new tokens entering circulation each month.
Thirdly, developers must focus on growing the network’s ecosystem. This move might shift Pi Network from a “ghost chain” status to an application-focused network resembling Ethereum $3,951 or Solana $194 . Additionally, comprehensive clarity on decentralization could have a positive impact on the price. Despite owning billions of tokens, the Pi Foundation has not empowered community members in decision-making over the network.
Parallels: Worldcoin and Decentralization Debate
In a similar vein, Worldcoin (WLD), backed by Sam Altman, faced criticisms regarding decentralization. The project, which relies on biometric identity verification through eye scans, sparked debates over user data security, yet its market value soared beyond $2 billion. Pi Network travels a similar path, with bold technological promises but struggles to earn community trust.
At its core, Pi Network battles a transparency deficit and a slow application process, despite its robust technological foundation. Steps such as exchange listings or supply reduction could provide short-term price support. However, lasting success hinges on strengthening the ecosystem with tangible products and enhancing community participation.
