Pi Price Drop: Over 23 Million Pi Token Unlocking on March 21— Will Token Burn Prevent a Price Crash?

The Pi Network community actively monitors signs of possible token burns despite no confirmation from the team. Several ecosystem mechanisms contribute to reducing circulating supply, such as transaction fees permanently removed from circulation. Additionally, unverified accounts failing KYC verification may decrease the total supply. These ongoing reductions indicate that, even without an official Pi token burn event, the network operates with deflationary tendencies.

Pi’s Hidden Burn Mechanisms: What’s Really Happening?

Although there has not been an official announcement for the Pi token burns, there have been some technical signs. As such by analyzing the data from the Pi network some community members have been speculating about token burns. The Pi network has many mechanisms that can reduce the total count of PI coins. One such way is the network’s transaction fees which are removed from circulation and burned to reduce inflation. 

Based on the data from the network around 528,671 PI tokens have been burned till early March. Based on this data we can estimate a daily burn count between 3,000 to 4,000 tokens. This however is not a mechanism that has started recently and will be an ongoing feature in the network. Another group of PI tokens that are likely burned are coins belonging to accounts without KYC verification. 

Pi Token Supply: Effects of Token Unlocks on Value

The know-your-customer process was a necessary step for transferring Pi token to the mainnet which opened on February 20. Based on posts on X, PI from users who missed the KYC grace period ( December 30, 2024 ) has been burned. Now the total supply is reduced to 6.99B, a decrease compared to before the transition to the mainnet. As such despite the lack of a burning event from the Pi network’s team, the supply is systemically reduced.

Despite the reduction in token supply PI’s value has been falling recently. According to Coinmarketcap, now PI coin is trading at $1.15, recording a nearly 23% of weely decline. This decline can be attributed to external factors like global economic turmoil And internal factors like the recent token unlocks. On March 17,  23.1 million PI was unlocked which now is equal to $26.565 million. Furthermore, 23.4 million PI is set to be unlocked on March 21 which is worth $26.91. Such large token releases often push the price down as traders. 

Pi Coin: Key Levels to Watch for a Potential Reversal

Although the price has experienced a bearish trend recently, Pi’s price prediction shows that this coin could bounce back. One factor driving this optimistic view is the PI’s increasing adoption, which has recently skyrocketed especially in China. Based on various reports currently some restaurants and retail businesses are accepting PI as payment. Such utility and real-world use cases can increase the adoption even further and help the coin’s long-term growth. However, there are also some technical factors that should be considered for PI’s future rebound.

Chart 1 – Provided by PropTradePros, published on Bravenewcoin, March 19, 2025

Chart 1 highlights that PI needs to remain above the $1.05 support to reclaim its bullish momentum. Additionally, a break of the $1.37 resistance level is also necessary for further price increases. The coin also has major psychological support at $1.10, which can push PI to a trend reversal. Such a reversal is likely to send the price above $1.50 and eventually even $2.0.

Pi’s Long-Term Value: Utility and Supply Control

Looking ahead, Pi’s price prediction will depend on sustaining key support levels and growth in adoption. Additionally, if the network continues to reduce supply through transaction burns and inactive accounts, its long-term value could strengthen. Real-world utility could also drive PI’s recovery, as the real-world demand may help mitigate inflationary pressures from token unlocks.