The Pi Network price has slumped this month as the recent launch of Pi Ventures, the $100 million program that aims to invest in applications in its ecosystem. Pi Coin was trading at $0.7440 on Tuesday, down by 56% from its highest point this month and over 70% lower than the all-time high. This article explains the top ways to boost the price of Pi Coin.
End of Pi Network centralization
A common concern among investors is that Pi Network is a highly centralized entity, where the so-called Pi Foundation has all the power. It has thousands of wallets that hold tokens worth over $92.7 billion tokens.
The foundation and the core team are responsible for all decisions. Unlike many other top crypto projects, these decisions are not subject to a vote.
Highly centralized cryptocurrency projects carry inherent risks. A primary concern is the potential for wallet infiltration, exemplified by the recent Cetus Protocol incident. Successful attacks could result in large-scale token dumping and a subsequent rapid price decline.
Second, there is a risk that no major crypto exchange will list Pi Network as long as the foundation has all this power. Binance has rejected listing the coin even after its users voted overwhelmingly for its listing. Other popular exchanges like Coinbase and Upbit will not list it as long as this happens.
Third, the ongoing centralization has triggered a lack of transparency in the network. For example, Pi’s insiders have been accused of dumping tokens in the past few weeks. Further, centralization introduces a single point of failure.
The most important solution for this centralization problem is to decentralize the network by having thousands of nodes globally. Also, it would make sense to have a qualified auditor to oversee transactions.
Pi token unlocks
The other top concern about the Pi Network price is the ongoing token unlocks. Data shows that the network will unlock 1.51 billion tokens in the next 12 months or the average monthly figure of 132.3 million. At the current price, the tokens to be unlocked in the next 12 months are worth $1.12 billion or 22% of the market cap.
These token unlocks will continue for a long time since there are 7.2 billion tokens in circulation against a maximum supply of 100 billion.
Token unlocks are often bearish because they reduce ownership among existing holders. Also, they increase the supply at a time when demand is not rising.
One possible solution for this is to burn some of the unlocked tokens, a move that would boost the value of the remaining tokens.
Pi ecosystem growth
The third way to boost the value of the Pi Network price is to grow its ecosystem, which is still small today. One way of doing this is the ecosystem fund, which the developers have launched. However, the outcome of this fund will take many years to happen as it takes months or even years to build quality applications.
Another way is to change how users interact with apps on the Pi Network ecosystem. Instead of the developers focusing on the Pi Browser, apps should be available on popular platforms like App Store and Android.
Read more: Behind the hype: Is Pi Network a $70 billion ghost chain?
Pi Network price analysis
Pi coin price chart | Source: TradingView
The eight-hour chart shows that the Pi Network price has crashed in the past few weeks. It dropped from a high of $1.6638 earlier this month to the current $0.7380.
The coin has formed a bearish flag pattern, comprising of a vertical line and a rectangular consolidation pattern. It has moved below the 50-day moving average, while the Relative Strength Index (RSI) has pointed downwards.
Therefore, the coin will likely continue falling as sellers target the key support level at $0.50, down by 32% from the current level.
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