Pi Network shows growth despite market downturn: app update and dilution risks
While the broader cryptocurrency market is undergoing a correction, losing nearly 3% over the past 24 hours, the Pi Network (PI) token is showing a confident, albeit modest, gain of 3.5%. At the time of writing this analysis, PI is trading near the $0.078 mark, partially recovering from recent losses that led to a new all-time low.
The key catalyst for this upward movement was the launch of an updated design for the Pi Network mobile mining app. The project team revamped the side menu and profile page, which, according to their statement, should simplify navigation and speed up access to important account data. This redesign is the first part of a larger update preceding the launch of Protocol v25, scheduled for July 22. The new protocol version is expected to enhance network stability and introduce smart contracts with enhanced privacy.
Not All Is Rosy: Supply Pressure Remains Critical
Despite the positive news backdrop, PI's fundamental metrics raise serious concerns. Just a few days ago, on July 14, the token hit a new all-time low, dropping to $0.071. The current 11% rebound from this level is just a drop in the ocean: PI is still approximately 97% below its February 2025 peak of $2.99. Over the past month, the asset has lost 42% of its value.
The main threat to the price is the colossal and constantly growing supply. Currently, 10.9 billion PI are in circulation out of a maximum of 100 billion. According to PiScan, approximately 4.25 million coins are unlocked daily, which, at the current price, is equivalent to an influx of roughly $333,672 into the market. This constant influx of fresh tokens creates powerful selling pressure, which, in my opinion, is unlikely to be fully offset even by positive ecosystem development news.
My Analysis: The app update and the upcoming Protocol v25 are positive steps for infrastructure development, but they do not solve Pi Network's main problem: excessive supply amid weak real demand. Until the project demonstrates a convincing increase in utility capable of absorbing these billions of coins, any short-term growth will merely be a correction within a long-term downtrend. The key test will be the market's reaction after July 22 — can the new protocol version reverse the bearish trend, or will selling pressure prevail once again?