Pi Network (PI) experienced a sharp price drop of around 25% when its value dropped to around $1.10. This drop came shortly after a significant rise, with the token price climbing to $1.29, and even $1.40 on some exchanges.
The reason for the sudden drop was the release of 8 million PI tokens, which significantly increased supply in the market and pushed the price down. Moreover, the situation may get worse, with another 13 million tokens due to be unlocked on 15 May, raising concerns about continued pressure on the price.
Interestingly, just a day before this crash, Pi Network made headlines due to its huge trading volume. In 24 hours, trading volume for PI reached nearly $1.9 billion, with the price up more than 100%. This growth was driven by large transactions from major token holders.
One single transaction involved the movement of 90 million PI tokens, which caught the attention of retail investors and sparked new enthusiasm in the market. There is now speculation as to whether the eventual listing of the PI token on Binance could help the token regain investor confidence and stabilize its price.