Aniket Pujari
PI is in the green but in a modest manner compared to other altcoins.
The cryptocurrency market has shown promising signs of revival over the past day or so, led by bitcoin’s massive surge from under $84,000 to almost $94,000.
Countless altcoins have performed even more impressively, posting double-digit gains, including many of the larger caps. ETH, SOL, ADA, LINK, BCH, and HYPE have all surged by somewhere between 10% and 20%.
However, the same cannot be said for Pi Network’s native token, which has gained just 2% since yesterday, prompting the question of why. After all, the alts situated around it have skyrocketed – PUMP is up by 17%, PEPE by 19%, while ENA has soared by 16%.
They have all surpassed it in terms of market cap, and PI is now down to the 64th spot on CoinGecko.
The most obvious answer to this lies in PI’s performance in the past month or so. In times when the entire crypto market was crashing, including double-digit losses from BTC, ETH, and others, Pi Network’s token managed to defy the broader market’s sentiment.
In fact, most of its movements were influenced by ecosystem updates, rumors of regulatory approvals, or mere speculation in some instances. Consequently, PI has again shown that it tends to perform separately from the rest of the market, which, in today’s situation, means a more modest increase.
What’s perhaps more worrisome for its upcoming performance is the number of average daily token unlocks, which is over 6.2 million for the next month – a lot higher than the 4.5 million averaged in October, for example.
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These token unlocks could trigger larger sell-offs if investors who had been waiting for their coins decide to offload them upon receiving them.
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