Pi token slips after 8.7M PI unlock amid holiday merchant rollout
Pi Network released about 8.7 million PI tokens into circulation on Dec. 25, a scheduled unlock worth roughly $1.76 million at current prices. The distribution was the largest scheduled release in December and comes amid plans that could add ~54.7 million PI tokens (≈ $11.07 million) to circulating supply later in the month. PI traded near $0.203 at the time of reporting, down from a November high of $0.279 and slightly above an annual low of $0.192. Circulating supply is listed at ~8.37 billion PI with a market cap near $1.72 billion. Trading liquidity is concentrated on a limited number of exchanges. Concurrently, Pi Network reported holiday commerce participation from more than 125,000 merchants accepting PI for goods and services and is rolling out an updated wallet UI to selected users and business accounts. Open Mainnet activity continues with over 215 apps in the ecosystem. Primary keywords: Pi Network, PI token, token unlock, circulating supply. Secondary/semantic keywords: merchant adoption, wallet update, liquidity, market cap, token distribution.
Bearish
The immediate market reaction is bearish for several reasons: 1) Supply shock — the unlock of 8.7M PI (and potential further distributions totaling ~54.7M) increases circulating supply, which can pressure price when demand is unchanged. 2) Thin liquidity — trading is concentrated on a few exchanges, so larger sells or perceived increased supply can magnify downward moves. 3) Price trajectory — PI had already declined from its November peak and hit an annual low recently, indicating limited bullish momentum going into the unlock. 4) Mixed fundamental cues — merchant adoption (125k merchants) and wallet UI improvements are constructive long-term signals but are unlikely to offset short-term selling from token releases. Historical parallels: scheduled token unlocks (vesting/cliff releases) in other projects often coincide with short-term price weakness (e.g., vesting-driven sell pressure seen in various altcoins), especially when liquidity is thin. Trading implications: expect elevated volatility around further unlock dates; short-term traders may favor short or neutral positions and tighter risk controls. Swing traders should monitor on-chain distribution, exchange inflows, and merchant uptake metrics for signs of sustained demand before scaling long positions. Long-term holders can view merchant adoption and ecosystem growth as constructive but should price in dilution risk until supply additions stabilize.