PI Plunges 90%: Pi Network Market Cap Wiped Out — What’s Next for PI Price?

Introduction

Pi Network’s PI price has crashed over 90% since its March debut, wiping out roughly $16–$18 billion in market cap as the token slid from about $2.79 to $0.26. The steep decline has reignited “rug pull” allegations from parts of the community, with commentators arguing that such a rapid drawdown erodes investor confidence and underscores fragile token economics. Despite the broader sell-off and weak sentiment, some accumulation signals appeared: Pi Scan recorded around $112.3 million in net outflows from exchanges over 24 hours, suggesting buyers moved PI off exchanges after purchases (AMBCrypto).

Beyond price, on-chain and derivatives metrics point to fading speculative interest. Glassnode data cited in the report shows PI futures open interest collapsing from nearly $120 million to roughly $20 million, indicating a sharp retreat from leveraged bets. Meanwhile, token inflation has accelerated: PI’s circulating supply expanded by more than 1 billion tokens since May, adding persistent sell pressure. Combined with unmet ecosystem expectations and lingering trust issues, these fundamentals have weighed on PI price action and investor sentiment.

Looking ahead, the outlook hinges on whether the Pi Network can address community concerns and moderate supply growth. Without clear progress on roadmap delivery, ecosystem utility, and tokenomics, PI could remain under bearish pressure. Conversely, a stabilization in circulating supply, transparent development updates, and renewed user growth could help PI build a base above current levels. SEO keywords: Pi Network, PI price, rug pull, market cap, token inflation, circulating supply, open interest, derivatives, exchange netflow, investor sentiment, Pi Network outlook, PI price prediction. 

Background

Pi Network’s PI token has fallen over 90% since its March debut, sliding from around $2.79 to roughly $0.26 and erasing an estimated $16–$18 billion in market cap. The sharp drawdown has reignited “rug pull” claims from parts of the community, particularly after unmet expectations and a controversial $100 million venture fund announcement earlier this year. While the term “rug pull” is often used loosely to describe steep declines, it traditionally refers to a deliberate exit scam where developers drain liquidity and abandon a project. As of now, the evidence presented centers on market performance, supply expansion, and perceived misalignment with community expectations rather than definitive proof of an exit scam. AMBCrypto’s reporting also notes mixed signals on flows: Pi Scan recorded ~$112.3 million net outflows from exchanges in 24 hours, suggesting some investors are accumulating by moving PI off exchanges after purchases.

Derivatives and on-chain metrics help explain persistent sell pressure. According to glassnode data cited in the report, PI futures open interest (OI) declined about 10x—from nearly $120 million to ~$20 million—indicating a sharp retreat in speculative participation. At the same time, circulating supply reportedly increased by more than 1 billion tokens since May, adding inflationary pressure that can weigh on price if demand doesn’t keep pace. These dynamics are consistent with broader crypto principles: large supply growth and fading leverage often depress price action until fundamentals, utility, or sentiment improve. For context on how “whales” and flows can affect markets, see primers from Binance Academy and Investopedia; entities with large holdings can influence liquidity and price, and their movements are closely watched by traders for signals (Binance Academy, Investopedia).

Understanding the indicators mentioned can help separate noise from signal:

• Exchange netflows: Positive netflow means more tokens moving into exchanges (often a sign of potential selling); negative netflow means more moving out (often associated with accumulation or cold storage). Netflows are directional clues, not certainties, and should be read alongside price and volume.

• Open interest (OI): The total value of outstanding derivatives contracts. Falling OI typically means positions are closing and speculative interest is declining, which can reduce volatility but also sap momentum.

• Token inflation/circulating supply: All else equal, faster supply growth requires stronger demand to maintain price. Transparent issuance schedules, vesting, and burn mechanisms can mitigate inflation concerns.

What could stabilize PI? Historically, price recoveries in crypto assets often follow a combination of clearer roadmap delivery, utility growth (real network usage, credible apps), reduced sell pressure (slower supply issuance, transparent tokenomics), and improving sentiment. If the Pi Network team addresses community concerns and improves transparency around supply and ecosystem development, PI may be able to build a base; if not, extended consolidation or further downside is possible.

Important definitions and resources

• Rug pull: A form of exit scam where developers withdraw funds or abandon a project, leaving investors with illiquid or worthless tokens. For deeper background on crypto scams and security best practices, see Coinbase Learn and regulatory advisories from organizations like the FTC on how to spot crypto scams.

• Whales: Large holders that can sway markets with significant trades. Learn more at Binance Academy and Investopedia.

• Open interest (OI): A measure of the number/value of open derivatives contracts; falling OI often reflects decreasing speculative activity.

• Exchange netflow: Net tokens moving into or out of exchanges; often used as a sentiment proxy.

Actionable checklist for readers

• Review tokenomics: Look for transparent supply schedules, vesting, and on-chain data confirming circulating supply.

• Track flows and positioning: Monitor exchange netflows and OI, but always corroborate with price and volume.

• Focus on real usage: Ecosystem apps, developer activity, and active addresses provide a foundation beyond hype.

• Diversify risk: Consider position sizing, stop-losses, and a long-term plan consistent with your risk tolerance.