The post Exclusive Pi Network News: The Hidden Liquidity Story Behind the 94% Drop appeared first on Coinpedia Fintech News

One year after launching its Open Network, Pi Network is navigating a challenging phase.

While the project recently celebrated its first Open Network anniversary, Pi Coin is trading near historic lows, raising concerns among investors who had anticipated faster gains.

At the time of writing, Pi Coin is priced around $0.1622, below its reported all-time high of $2.98 recorded on February 26, 2025. The token remains down more than 94% from that peak, though it has recovered roughly 28% from its recent all-time low of $0.1312 earlier this month.

“Price Is Driven More by Liquidity Than Utility”

In an interview with Coinpedia, crypto analyst Dr Altcoin addressed investor concerns about Pi Network’s current price performance.

“Many investors expected immediate upside, but Pi entered open trading after years in an enclosed ecosystem,” he said.

He explained that early post-launch trading dynamics tend to be dominated by short-term forces rather than long-term fundamentals.

“At this stage, price is driven more by liquidity conditions, supply unlocking, and short-term speculation than by fully developed utility.”

According to him, this pattern is not unique to Pi Network. Many blockchain projects experience early volatility before stronger fundamentals begin to influence valuation.

Explaining the Gap Between All-Time High and Current Price

Dr Altcoin also discussed the significant difference between Pi Coin’s early all-time high and its present trading levels.

“Early all-time highs were formed under conditions of thin liquidity, hype, and, in some cases, confusion caused by IOU pricing before real market depth developed.”

He said that early expectations may have priced Pi as a fully matured ecosystem, whereas the current valuation reflects a project still building infrastructure and real-world use cases.

“This gap highlights that early expectations priced Pi as a finished product, while the current price reflects a network still actively building real-world usage and infrastructure.”

Still Ranked Among Top Projects

Despite the price decline, Pi Network has managed to maintain a top-50 ranking on CoinMarketCap, even without listings on major tier-1 centralized exchanges.

This signals resilience rather than failure, suggesting that the project’s long-term relevance will depend on ecosystem growth rather than short-term speculation.

As Pi Network moves into its second year of Open Network operations, the focus now shifts to development progress, adoption metrics, and whether utility can eventually support stronger price stability.