Despite Pi Network’s DEX and AMM Testnet Launch, Its Price Keeps Falling—Here’s Why That Matters
The Pi Network recently made headlines with the launch of its Decentralized Exchange (DEX) and Automated Market Maker (AMM) on the testnet—two major steps toward integrating Pi Coin into the broader decentralized finance (DeFi) ecosystem. Yet, despite these promising technical upgrades, Pi Coin’s price continues to slide, leaving many investors and pioneers puzzled. This article explores the underlying reasons for the decline and what it reveals about the project’s current state.
Innovation vs. Market Sentiment
The DEX and AMM testnet launch allows developers to simulate token swaps, create test tokens, and experiment with liquidity pools. These tools are essential for building a robust DeFi infrastructure. However, the upgrades remain confined to the testnet, meaning they don’t yet impact the live market or real token utility.
While the Pi Core Team emphasizes safety and gradual rollout, the lack of a clear timeline for mainnet integration has led to growing frustration among the community. Many developers and users feel stuck in a loop of testing without tangible progress.
Price Action and Technical Analysis
Pi Coin has dropped below key support levels, recently trading around $0.2735, nearly 90% below its all-time high. Technical indicators show a bearish flag pattern, with the price falling beneath both the 25-period and 50-period Exponential Moving Averages. Analysts warn of a potential drop toward the psychological level of $0.20, unless the coin breaks above resistance at $0.3300.
This persistent downtrend suggests that market confidence is eroding, despite the technical advancements.
Centralization and Token Unlocks
One of the most pressing concerns is Pi’s centralization. The Pi Foundation controls billions of tokens, and the network’s governance remains opaque. This lack of decentralization contradicts the ethos of blockchain and DeFi, making it harder for Pi to gain credibility among major exchanges.
Additionally, Pi is undergoing massive token unlocks, with 139 million tokens released this month alone. This inflationary pressure dilutes value and discourages long-term holding, further contributing to price weakness.
Ecosystem Stagnation
Despite the testnet activity, mainnet usage remains minimal. Most transactions are limited to user migration, and trading volume has dropped from $72 million to just $23 million in recent weeks. Without a clear roadmap for ecosystem integration, developers are hesitant to commit, and users are losing interest.
What Needs to Change
For Pi Network to reverse its downward trajectory, it must:
- Accelerate mainnet deployment of DEX and AMM features.
- Improve transparency around governance and token distribution.
- Address inflationary risks with a sustainable tokenomics model.
- Engage the community with clear milestones and developer incentives.
Until these issues are resolved, technical upgrades alone won’t be enough to restore investor confidence or drive meaningful adoption.