Pi Network Crashes 40% in 2 Weeks: 3 Reasons Behind the Fall

Pi Network Crypto: 40% gone in just 2 weeks. After soaring over 200% in under a month, Pi Network's price is now taking a bearish turn. Traders are estimating more pain ahead as the March 14 migration deadline nears, which involves transferring Pi tokens from the enclosed mainnet (where they are not tradable) to the open mainnet. This will allow real transactions and the much-awaited Binance listing. Users must complete KYC verification and link their wallets before migrating their tokens.

Pi Network witnessed a sharp drop of 11.65% in the last 7 days, trading between $1.30 and $2. While the crypto coin is already listed on multiple exchanges, the Binance listing is yet to take place and has kept investors on edge. If this comes through, crypto traders expect a strong rally in near-sight.

However, as for now, uncertainty continues to loom. Here are 3 reasons why-

1.Broader Uncertainty

While Pi Network has seen a sharp price drop, it’s not the only crypto coin facing a bearish trend. Major other VDAs (Virtual digital assets), including Bitcoin, ADA, SOL and XRP, witnessed a sharp drop in price levels owing to geopolitical uncertainty. Trump's trade tariffs threaten to create more turbulence in an already blurry economic outlook.

The price levels of cryptocurrencies don't move in a vacuum and thus, any geopolitical news or policy/regulatory change, especially in the US, can trigger the cost of digital currencies. Even the price of Bitcoin, after surpassing the $100k level mark, dropped below $80k.

2.Competing Against Dominating Crypto Coins

Pi Network faces tough competition against dominating and more-established cryptocurrencies like Bitcoin and Ethereum. These crypto coins already have strong adoption views, liquidity and real-world use cases. Unlike these giants, Pi is still in its early stages and lacks major exchange listings. The cryptocurrency is yet to prove its utility in the open market.

Once the migration process takes place, traders and digital currency users might feel more confident about investing their money in Pi Network. Users must complete KYC verification and link their wallets before migrating their Pi holdings. The deadline is set for March 14.

3.Profit-Booking

After surging over 200% in less than a month, many early holders might have cashed out the gains leading to increased selling pressure. With limited real-world utility and uncertainty around the March 14 migration, traders would have been more inclined to lock-in profits rather than holding for long-term gains.