Here’s why Pi Network has become a top fallen angel in crypto

Pi Network price has stalled close to its all-time low this month despite having some major bullish catalysts, including the ongoing upgrades, pivot to artificial intelligence, and the upcoming launches of Pi tokens. It was trading at $0.1330, down substantially from the all-time high of close to $3.

Pi Network price become a fallen angel

Pi Network price has dropped in the past few months, erasing billions of dollars in value. Its peak market capitalization has dropped from close to $20 billion to the current $1.3 billion, turning one of the most popular tokens into a fallen angel. A fallen angel is an asset that was once popular and thriving but one that is struggling today.

Pi Network has become a fallen angel despite some major announcements. For example, it is now going through one of the most important upgrades in its history. Since early this year, it has migrated from v19 of the Stellar Consensus to 25 today. It will soon launch the final stage of the upgrade. 

These upgrades have had some major implications, with the most important one being the launch of smart contracts on its network. With some more network tweaking, it will now become possible for users to build decentralized applications in the platform. That will make it a closer competitor to popular chains like Solana and Ethereum. 

Pi Network price has also stalled despite its platform having some ecosystem growth. One of these milestones happened recently when CiDi Games launched its games on the platform. Within the first week, the games had attracted thousands of players. 

At the same time, Pi Network has been pivoting towards the artificial intelligence industry. For example, the developers launched a way for creators to bring their vibe-coded applications to the network and gain millions of users. It is also working on launching a KYC-as-a-Service, a move that will see it compete with the likes of Worldcoin and Humanity.

Most notably, Pi Network was listed on Kraken a few months ago. This is a major milestone as it made it available to millions of users, especially those from the United States.

Why the Pi Coin price has slumped

There are a few reasons why Pi Network has become a fallen angel despite these milestones. First, the performance is in line with that of Bitcoin and the broader crypto market. Bitcoin and most altcoins have all slumped by double digits this year.

Second, the network’s tokenomics have been a major let-down as it has continued to release millions of tokens each month. Data shows that it will unlock over 1.4 billion tokens in the coming 12 months. These unlocks are happening at a time when demand remains thin. 

According to CoinMarketCap, its volume in the last 24 hours was less than $5 million. Indeed, the Kraken listing did not drive more American users to the network. As such, too much supply and weak demand will always lead to lower prices over time.

Third, Pi is still one of the most centralized players in the crypto industry, and the team has not made any efforts to decentralize it. This centralization places it at risk of a major issue as we saw with the recent Humanity hack.

Additionally, some investors are likely skeptical on whether some of its initiatives will pay off eventually. For example, it is unclear whether its smart contract features will succeed. Data shows that many smart contract networks like IOTA and Monad rarely become viable alternatives to Ethereum.

Finally, many Pi Network investors likely capitulated as it continued falling after the mainnet launch last year. Some moved to the stock market, which has been booming in the past few years.