Pi Network (PI) is currently going through a turbulent phase. In early May, the token experienced a strong revival: the course rose from around $0,57 to a peak of $1,57. However, sentiment has since turned. In the past 24 hours, PI has lost a whopping 30,4% of its value. What is behind this sudden drop in price?
Most of the gains from the recent rally have now been erased. The current price of $0,88 is only 17% above where it was a month ago, a stark contrast to its previous peak. The picture becomes even bleaker if we look back three months, when PI reached its all-time high of $2,99. Against this backdrop, the price is now down more than 70%, indicating a significant decline in investor confidence.
The sharp decline appears to be caused by several factors. The Pi Network Ventures investment fund was recently announced, with a substantial $100 million budget to support startups looking to integrate the PI token into their applications. Despite the fund's size, the market reaction has been less positive—investors are cautious and eager for concrete results.
In addition, the broader crypto market plays a role. Both yesterday and today there has been a general correction, with many altcoins losing ground. PI is hit particularly hard by the failure of earlier expectations of an exchange listing, further eroding investor confidence.
With the fund, Pi Network will focus on innovative sectors such as generative AI, gaming, FinTech and social media. Companies that receive funding will also gain access to Pi’s global community of over 19 million users. On paper, this seems like a strong move, but the market is clearly waiting for tangible progress. Without that, PI will struggle to regain investor confidence.
Why has the PI price fallen so much?
The price drop is the result of a combination of a wait-and-see attitude among investors and the failure to capitalize on previously expressed expectations about an exchange listing.
What is the purpose of the Pi Network Ventures investment fund?
The fund's goal is to support startups that integrate the PI token into their applications, with a budget of $100 million.
Which sectors does Pi Network focus on?
Pi Network focuses on innovative sectors such as generative AI, gaming, FinTech and social media, with the aim of supporting companies that want to use its token.