Key Insights
- Pi Network price faces a major risk in December as 187 million tokens are unlocked.
- However, the token has more bullish catalysts to offset the risk of unlocking.
- For example, the pace of token unlocks is expected to start falling in January.
Pi Network price has had a solid performance in November, soaring by over 12%. In contrast, the crypto market cap dropped by 19% during the month. Ethereum and other altcoins dropped by over 25%. So, will the Pi Coin price retreat in December ahead of the upcoming 187 million token unlocks?
Pi Network Price Braces for a Big Token Unlock
Pi Coin price could come under increased pressure in December as its supply continues to rise. Data compiled by PiScan shows that over 187 million tokens, currently valued at $48 million, will be unlocked. This will be a bigger unlock than the 145 million tokens that will be released to the market.
Token unlocks are typically bearish, as they increase the number of tokens in circulation, leading to inflation. In Pi Coin’s case, there will be 1.2 billion unlocks in the next 12 months and much more in the future.
In most cases, crypto projects mitigate the impact of unlocks by implementing token burn mechanisms that continually reduce the circulating supply. For example, Binance burns BNB tokens worth over $1 billion a quarter, while millions of Shiba Inu coins are removed from circulation a month.
However, it is unlikely that the upcoming unlocks will have a major impact on the Pi Network price. For one, these unlocks have already been factored into the market’s pricing.
Additionally, the pace of unlocks is expected to continue falling in the coming months, thereby reducing inflation. One hundred twenty-one million tokens will be unlocked in January, followed by 130 million in February, 96 million in March, 85 million in April, 76 million in May, and 75 million in June. This decline in burns will be bullish for the Pi Coin price.
Another reason is that Pi’s developers may eventually decide to burn billions of tokens, especially when the Know Your Customer (KYC) process ends. Such a move would likely lead to a parabolic surge, as seen with other tokens, such as OKB and Uniswap, recently.
Pi Coin Has Key Catalysts in December
Meanwhile, there are signs that Pi Network’s price has numerous catalysts that will eventually boost its performance over time.
For example, the developers recently launched a testnet for their Decentralised Exchange (DEX), token creation, and Automated Market Making (AMM) tools within the network.
Once ready, users will be able to create tokens, which will then be available on the DEX platform. In the statement, the developers noted that the goal is to populate the ecosystem with tokens that have utility, rather than meme coins.
That feature, if successful, will likely lead to more utility for Pi and more users in the ecosystem.
Another potential catalyst that could offset Pi Network’s unlock is its ecosystem growth, which is already underway. For example, developers have already begun investing in companies that will provide Pi with additional utility.
The developers invested in CiDi Games this week and in OpenMind a few weeks ago. CiDi Games will bring more gaming utility to the network, while OpenMind will bring in the AI angle.
There is also a limited chance that Pi Network will be listed by one or more crypto exchanges in December, a move that will boost its performance
Pi Network Price Technical Analysis
Technical analysis suggests that the Pi Coin price has some bullish catalysts that will push it higher in December.
The most notable one is that it is in the accumulation phase of the Wyckoff Theory, which often leads to more upside when it moves to the markup stage.
Pi Coin price has also formed a double-bottom pattern and moved above the Supertrend indicator.
Therefore, the token will likely rebound and potentially hit the double-bottom’s neckline at $0.2910, followed by the psychological level at $0.50. The bullish outlook will become invalid if it drops below the support at $0.200.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
