Speculation of Pi Network coin burn is increasing, Here’s How It Could Skyrocket Pi Coin’s Price! Check out the full analysis here.

Pi Network’s Potential Token Burn: Could It Revive the Cryptocurrency’s Value?

Pi Network has recently experienced a sharp decline in value, wiping out billions from its market capitalization. The sudden downturn has raised concerns among investors, with many pointing to dilution as a primary factor. With over 1.6 billion Pi tokens set to be unlocked this year, speculation is mounting over whether a strategic token burn could counteract the potential oversupply and stabilize the market.

Understanding the Pi Network Decline

The ongoing bearish trend in Pi Network’s value comes amid broader cryptocurrency market struggles, where even Bitcoin (BTC) and major altcoins have faced setbacks. However, unlike traditional market movements driven by macroeconomic trends, Pi’s decline is largely attributed to its increasing token supply.

Recent data suggests that more than 118 million Pi tokens are scheduled to be unlocked in March alone, with an estimated 1.6 billion tokens worth approximately $1.4 billion set to enter circulation over the next 12 months. On average, around 136 million Pi tokens will be unlocked monthly, further contributing to the dilution problem.

CoinMarketCap reports indicate that Pi Network currently has 6.84 billion tokens in circulation, with a maximum supply of 100 billion tokens. This continuous release of new tokens has made it increasingly difficult for prices to maintain stability, with many investors expressing concerns over potential devaluation.

Could Token Burning Be the Solution?

Token burning—permanently removing a portion of a cryptocurrency’s supply from circulation—has been used by various projects to counteract inflationary pressure and boost investor confidence. This strategy involves sending tokens to an inaccessible “dead” wallet, reducing the total circulating supply and, in theory, increasing scarcity and value.

If Pi Network were to implement a token burn, it could serve as a catalyst for price recovery. By curbing the number of tokens in circulation, the Pi ecosystem might regain stability and attract more confidence from investors. But how realistic is this possibility, and what approaches could Pi Network take?

Two Possible Approaches to Pi Token Burning

According to industry analysts, there are two primary methods Pi Network could use for token burning:

1. Burning Tokens of Inactive Pioneers
   One potential approach involves burning Pi tokens that belong to pioneers (early adopters) who have not completed Know Your Customer (KYC) verification or migrated their holdings to the mainnet. Currently, it is estimated that only 12 million pioneers have successfully migrated to the mainnet, despite Pi Network previously boasting over 50 million miners at its peak. If the unverified or inactive tokens were to be burned, it could significantly reduce supply, alleviating selling pressure and potentially leading to a price increase.
2. Burning Transaction Fees
   Another approach could involve utilizing a portion of transaction fees generated within the Pi Network ecosystem for token burning. As the network expands and sees more transactional activity, fees from these interactions could be redirected towards regular burns, ensuring a continuous mechanism for supply reduction. With around 100 ecosystem applications expected to launch on the Pi mainnet, transaction-based burning could play a crucial role in maintaining a balanced token economy.

If either or both of these strategies were implemented, the move could provide a much-needed boost to Pi’s market perception and long-term value.

Technical Analysis: What’s Next for Pi Network’s Price?

Despite speculation around a potential token burn, market sentiment remains cautious. On March 19, 2025, Pi Network’s price showed signs of further bearish momentum, driven by a head and shoulders pattern—a technical indicator often associated with downward trends.

The four-hour price chart revealed a bearish pennant pattern, further signaling potential downside risks. If this pattern continues, Pi Network could test the critical $1.00 support level, a break below which might trigger further declines.

However, a reversal scenario is still possible. Should Pi’s price manage to reclaim the $1.80 resistance level, it could invalidate the bearish outlook and pave the way for a recovery. Key catalysts that could influence such a turnaround include:

• Confirmation of a structured token burn
• Listings on centralized (CEX) and decentralized (DEX) exchanges
• The introduction of a Pi-based ETF

Some analysts have speculated that if these factors align, Pi’s price could surge to as high as $3.14, a figure symbolically tied to the mathematical constant Pi.

The Road Ahead for Pi Network

While token burning has proven effective in other cryptocurrency projects, whether Pi Network will adopt this approach remains uncertain. If implemented, it could mark a turning point for the digital currency, restoring confidence among its users and improving its market performance. However, without concrete actions from the Pi Core Team, concerns over dilution and oversupply may continue to suppress its value.

For now, Pi Network investors and enthusiasts will have to wait for further announcements to see if the much-debated coin burn becomes a reality or remains mere speculation. Regardless of the outcome, Pi’s journey remains one of the most intriguing narratives in the ever-evolving world of cryptocurrency.

Writer @Barland

Barland is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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