Social cryptocurrency project Pi Network’s price is approaching all-time lows as more coins are being unlocked.

CoinMarketCap data shows that Pi Network (PI) was trading at $0.6722 at the time of publication, close to its all-time low of $0.6152 reported on Feb. 20. The price action comes as over 126.6 million PI tokens are expected to be unlocked this month, equivalent to just under 1.87% of the coin’s current circulating supply.

Monthly Pi unlock chart. Source: PiScan

Founder of Obchakevich Research, Alex Obchakevich, told Cointelegraph he attributed the price downturn to continued PI unlocks. He described the event as “inevitable in any case” and said:

“Monthly unlocks exceed demand, which greatly affects the token’s value. “

Related: The truth about Pi coin: Could it be the next Bitcoin?

So far, the network has unlocked 4.9 billion PI, with 1.54 billion more coins being freed in the next 12 months. Pi Network has unlocked an average of 133 million PI per month.

The current downturn follows February’s all-time lows after the Pi Network mainnet launch. The project operated with trading restrictions that prevented its listing on any platform until that point, after which it was listed on Bitget, OKX and MEXC.

The potential is there

Still, Obchakevich also recognized the potential of the Pi Network. He said it should “focus on project development now to increase usage and interest.” He added:

“The project certainly has the potential to compete with the top 10 projects in the future. But now they need to stay on the market in such unstable times, as competitors offer more interesting conditions and products.“

Related: Pi Network mainnet launch: What it means for pioneers

What is Pi Network?

Pi Network is a mobile-first blockchain project allowing users to earn its native token, Pi coin, through an in-app daily check-in process. The network launched in 2019 and was developed by a team of Stanford University graduates

Pi Network employs a referral-based structure that sees users invite others to join in exchange for token earnings. In late February, Ben Zhou, the CEO of crypto exchange Bybit, challenged the project’s legitimacy and accused it of being a scam. He wrote at the time:

“Yes, I still think you are a scam, and no, Bybit will not list scam. “

Magazine: Help! My parents are addicted to Pi Network crypto tapper