Key takeaways
Pi Coin’s explosive $3 debut quickly unraveled due to extreme overvaluation and profit-taking by early users.
The coin’s $195B+ fully diluted market cap left little room for error, making a crash nearly inevitable once trading began.
Only 14 million out of 60M+ users passed KYC in time to access or sell tokens.
Despite the price collapse, Pi still commands millions of active users, real-world merchant adoption in 155 countries, and over 70 apps built in its ecosystem.
In early 2025, Pi Network finally moved from its “enclosed” phase into an open, tradeable mainnet.
With the Feb. 20 mainnet launch, Pi Coin (PI) was listed on crypto platforms such as Bitget, OKX, Gate.io and MEXC. Pi Coin’s price briefly spiked to nearly $3. But that euphoria evaporated within days.
By April 2025, Pi Coin had crashed to roughly $0.65, wiping out around $14.5 billion in paper value and knocking the coin from a top-10 market cap position.
As of mid-2025, Pi has been trading in the $0.50-$0.60 range, down about 80% from its late-February high. In short, Pi’s debut was a rollercoaster: a dramatic launch rally followed by a steep plunge.
What factors led to the Pi Coin crash?
Several forces combined to drive the Pi Coin crash such as speculative frenzy, token unlocks, limited liquidity and KYC bottlenecks.
Speculative frenzy and overvaluation
Some accounts note that Pi debuted around $1.70, briefly ran to $2.00 and reached a fully diluted market cap near $195 billion, rivaling Bitcoin (BTC). That left little margin for error. Once exchanges opened trading, some early mobile mining participants and speculators took profits immediately, triggering rapid declines.
Token unlocks and inflation
Pi has a built-in schedule that releases vast new supply into circulation. Within months of mainnet, 100+ million new PI was unlocked each month, with plans to add over 1.5 billion more in the coming year.
These token unlocks created major selling pressure. For example, analysts reported 10.5 million PI (about $5.8 million) unlocked on May 6, 2025, alone, with similar batches of over 200 million coins each month thereafter.
Every large unlock has overwhelmed demand and dragged prices lower — an example of how crypto volatility plays out with inflated supply.
Limited liquidity and exchange support
Unlike major coins, Pi remained listed only on a few “alt” exchanges. At launch, OKX, Bitget, Gate.io and MEXC added trading, but giants like Binance, Coinbase, Kraken and Bybit stayed out.
As a result, markets were thin and prone to swings. Bitget noted that 96% of PI’s supply sits in just 100 wallets, so each sell order (especially from large holders) can move the market. In fact, Bitget reported a 13% price drop on one unlock day. With thin order books and concentrated holdings, Pi Coin’s future remains vulnerable to sell-side shocks.
Migration and KYC bottlenecks
Pi’s open mainnet required users to pass Know Your Customer (KYC) checks before moving Pi out of the app. Reports indicate only about 14 million of the claimed around 60 million Pioneers managed to complete KYC and migrate their coins by the deadlines.
Those still stuck saw no way to spend or sell what they mined, which added frustration. Some longtime Pi Coin supporters who finally got access rushed to sell, pressuring the price. The slow identity verification rollout became a focal point of criticism from the Web3 community.
Together, these factors helped turn Pi’s launch mania into a sharp correction.
Did you know? Chinese authorities have criticized Pi’s referral-based mining model, calling it pyramid-like scheme and imposing trading restrictions in some regions.
Why Pi Coin is popular among PI supporters
Even after the crash, Pi has maintained a devoted following. The token’s backers point to its community-first design, mobile accessibility and expanding ecosystem.
Large, engaged community
Pi officially claims over 60 million engaged members, with more than 14 million having passed KYC. This gives the project one of the largest verified user bases in crypto. Pi’s partner pages note merchant coverage in 155 countries, with thousands already accepting Pi.
The Pi Network ecosystem has become sticky; millions of people have invested time and social capital into the project, giving it a form of value beyond market price.
Gamified ecosystem and real-world use cases
The Pi team continues to drive engagement through real-world activations. In March 2025, Pi held a global PiFest shopping event involving 125,000 registered merchants (58,000 active) and 1.8 million Pioneer shoppers using Pi on the “Map of Pi” app.
These activities keep the Pi Network ecosystem alive, even if trading volumes remain modest.
In July’s Pi2Day, over 2.6 million users completed an “ecosystem challenge,” with 761,000 receiving special badges. These community milestones matter for users who value airdrops, in-app progress and non-financial participation.
Developer activity and app layer growth
The project has also focused on developer tools. Via its Brainstorm app and new AI-powered App Studio, Pi has enabled users to build over 7,600 chatbots and 14,100 custom apps.
According to official data, more than 70 Pi-native apps are live, with use cases including payments, mini-games and utilities. The “.pi” domain auction reached 116,000 bids.
In May 2025, Pi Network announced a $100-million “Pi Network Ventures” fund to support app builders and strengthen its post-mainnet roadmap.
Did you know? Instead of proof-of-work, Pi uses SCP to achieve secure, energy-efficient mobile mining.
Pi Coin price: Expert and market outlook
Market observers remain split on Pi Coin’s near-term prospects.
On one hand, the token faces clear headwinds. Liquidity remains tight; Bitget notes that the top 100 Pi Coin wallets still hold roughly 96% of the total supply. Each token unlock to date has triggered a noticeable dip.
For example, one major unlock event in early 2025 caused a 13% intraday crash, underscoring how fragile Pi’s trading environment is. With major exchanges like Binance still avoiding listings and crypto volatility showing no signs of easing, sustained demand remains uncertain.
On the other hand, some analysts see potential for short-term stabilization. In February 2025, Analyst Kim H. Wong noted that transactions remain decentralized and unrestricted unless laws are broken. He also added that while users retain control, global adoption requires regulatory compliance, including KYC, especially as the world shifts toward Web3.
Other experts argue that Pi’s recovery depends on more than sentiment: The network needs real functionality. A recent post-mainnet analysis highlighted that many users are looking ahead to Pi Day announcements or potential new exchange listings to boost confidence.
But there’s also broad consensus that Pi Network must deliver key infrastructure upgrades (like full smart contract support and decentralized node selection) before it can fulfill its ambition of becoming a serious layer-1 blockchain.
Beyond technology, regulatory clarity and user protection remain critical. Observers point to ongoing scrutiny around Pi’s KYC system, which has been criticized for delays and unclear data policies. Until Pi can demonstrate transparent and secure handling of user identity, doubts will persist, particularly among institutional stakeholders and regulators.
Looking forward, Pi Coin’s future hangs in the balance. The massive Web3 community it has built, paired with an active development push, gives it a unique shot at redemption — if that activity translates into actual usage.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.