Behind the 5.40% decline of PI coin: the game between unlocking pressure and ecological breakthroughs

PI (Pi) has decreased by 5.40% in the past 24 hours, currently trading at $0.18, hitting a recent low. According to the latest data, PI’s market capitalization is approximately $1.547 billion, down $88.34 million from yesterday. This decline is not an isolated event but a direct reflection of the intensified contradiction between short-term supply pressure and long-term ecosystem development.

Supply Pressure Behind the Decline

The price pressure on PI mainly stems from two factors. First is the ongoing token unlocks. Data shows that over 4.6 million PI are still entering the market daily, with about 55.8 million tokens awaiting unlock before the end of this month. This dense release of supply, combined with relatively limited trading volume, naturally exerts downward pressure.

Second is the shrinking liquidity on exchanges. Over 4 million PI have been withdrawn from exchanges within 24 hours, with exchanges now holding only about 50% of the liquidity. This reflects cautious market participation, but from another perspective, large withdrawals may also indicate community confidence in long-term value.

Compared to the data, PI’s daily trading volume is about $18.5 million, which appears insufficient relative to the unlock pressure. In such a liquidity environment, any scale of sell-off can easily cause price shocks.

Accelerating Ecosystem Development

Contrasting with the price trend, the PI ecosystem has shown significant acceleration in development over the past week. According to the latest news, two major applications have officially launched:

• TokPi: The first short video social app built for PI, supporting users to send digital gifts directly using PI, now available in 10 languages
• Fixora: A local service marketplace supporting users to pay for household services, repairs, tutoring, and other daily needs using PI

The launch of these applications marks a shift of PI from a simple mining asset to a daily payment tool, representing a key breakthrough in ecosystem practicality.

Meanwhile, PI Network has released new SDK and API tools, enabling developers to integrate PI payment functions in as little as 10 minutes. This significantly lowers the technical barriers for third-party applications to connect, laying a foundation for rapid expansion of payment scenarios.

Regulatory Compliance and Community Governance Progress

PI Network has completed whitepaper registration with the European Securities and Markets Authority (ESMA), providing a regulatory basis for future expansion in Europe. Additionally, the project confirmed a key mainnet governance vote scheduled for January 22, where over 15.8 million mainnet users who have completed KYC can participate directly.

This decision-making mechanism, involving community participation, demonstrates progress toward fully decentralized governance and reflects a strategic shift toward prioritizing compliance.

Initial Signs of Community Practical Use

By 2026, the PI community has exhibited development features different from traditional crypto projects. Pioneer users and local merchants in various regions have begun experimenting with PI for peer-to-peer barter, covering snacks, household items, and daily necessities. Although these micro-level transactions are limited in scale, they reinforce PI’s feasibility as a medium of exchange.

Short-term Pressure vs. Long-term Fundamentals

From a technical perspective, PI’s price rebounded from $0.1502 on Monday to around $0.19, a roughly 30% rebound. However, the 20-day and 50-day EMAs remain in a downward arrangement, MACD has fallen below zero, and RSI hovers near 30, approaching oversold levels. This indicates that while there are signs of a rebound, the overall trend remains weak.

Summary

PI currently faces a typical contradiction between short-term difficulties and long-term potential. Unlock pressure and limited liquidity are unlikely to dissipate in the short term, continuing to exert downward pressure on the price. However, the accelerated launch of ecosystem applications, improved developer tools, initial community use cases, and progress in regulatory compliance are all laying a foundation for PI’s long-term value.

The evolution of this phase-specific contradiction will determine PI’s price trajectory in the coming months. The key is whether ecosystem development can sufficiently convert potential demand into actual trading volume to absorb unlock pressures. Currently, this remains a process that requires ongoing observation.