Pi Network Coin tumbles 11% after massive rally; Binance predicts rally not over

Pi Coin, from the stables of the Pi Network, which is the latest entrant in the cryptocurrency landscape, has seen a a sharp decline of 11.1% on Friday, falling to $2.49 within 24 hours.

This steep fall comes just days after the digital asset touched a post-listing peak of $2.94, reflecting heightened volatility. The downturn coincides with a broader sell-off in the crypto market, influenced by global economic factors, including Donald Trump’s trade policies, regulatory developments, and a major security breach at Bybit worth $1.5 billion.

Pi Coin’s Meteoric Rise and Sharp Pullback

Since the Open Mainnet launch on February 20, Pi Coin has witnessed an extraordinary price surge of over 300%, as per data from CoinMarketCap.

On Thursday alone, it jumped by 36.77% in a single day before giving up some gains on Friday. As of 11:09 AM (IST), the trading volume in the past 24 hours had plummeted nearly 40% to $147.31 million, with a total circulating supply of 68 million coins, according to CoinMarketCap data.

Why Is Pi Coin Declining?

As per reports, the current dip in Pi Coin's value aligns with an overarching downturn in the cryptocurrency market. Institutional investors appear to be playing a key role in the sell-off, with reports suggesting that BlackRock has offloaded significant amounts of Bitcoin and Ethereum.

What Is Pi Network?

Pi Network is a Web3-based blockchain platform designed to enable users to mine cryptocurrency using mobile phones—a stark contrast to Bitcoin, which requires high-end mining equipment. Users can accumulate Pi Coins by simply opening the app once per day, making it a more accessible alternative for crypto enthusiasts.

Binance Report: Pi Coin Faces a Steep Drop but Optimism Persists

According to the latest report from the cryptocurrency exchange Binance, Pi Coin's volatility is a cause for concern. The report argues that the present drop in Pi Coin's value must be seen against a fall in Bitcoin value, which has dipped below $85,000, contributing to broader market turbulence.

However, there is growing speculation that Pi Coin could rebound, with predictions suggesting it may reach $3 or even $4 in the near future, the report noted.

What Could Drive Pi Coin’s Next Surge?

Despite the recent setback, industry analysts remain optimistic about Pi Coin’s future trajectory. According to Binance, there are six broad reasons that could eventually work in Pi Coin's favour:

Major Exchange Listings: If Pi Coin secures listings on top cryptocurrency exchanges, it could experience a significant price surge.

Growing Adoption: As Pi Coin garners more media attention, new investors may enter the market, driving up demand.

Merchant & Payment Partnerships: If Pi Network secures collaborations with leading e-commerce platforms or payment processors, it could enhance Pi Coin’s legitimacy, thereby driving up its price.

Ecosystem Expansion: The launch of more decentralized applications (Dapps) within the Pi ecosystem could improve the coin’s utility and attract investors.

Influencer Endorsements: Support from prominent crypto analysts and media outlets could significantly boost Pi Coin’s visibility.

FOMO Buying: If Pi Coin's value starts climbing again, traders fearing they might miss out on potential profits could drive prices even higher through increased buying activity.

While the Pi Network Coin continues to navigate price fluctuations, investors remain watchful of market trends and upcoming developments that could determine its next move.