Pi coin fluctuates despite Bitcoin price

Since opening the network and being listed on cryptocurrency exchanges, the price of Pi has increased and decreased abnormally, not following market rules.

Pi is separate from the cryptocurrency market, increasing and decreasing abnormally. Photo: CoinGape .

According to data from CoinMarketCap , Pi is currently trading around $0.46 , down 84% from its peak in February. Despite recent fluctuations, Pi coin's price has often been below the $0.70 it was when it first listed. The decline in purchasing power and low trading volume reflect a worsening trend for the project despite its recent listing.

In particular, according to technical analysis, Pi has an unusual price movement, not following the distribution rhythm of Bitcoin or leading altcoins. During the market recovery period, Bitcoin reached an all-time high, but the coin mining project on the phone was still "head down".

Meanwhile, the general trend of the market is that altcoins follow the price of Bitcoin. After BTC increases, the remaining group of cryptocurrencies also follows. Similarly, when Bitcoin decreases. However, Pi coin almost "stands still" in the face of fluctuations, going against the current. Comparing the price movements since listing, regardless of the increase or decrease of other coins and tokens, the above cryptocurrency tends to go down over time, contrary to the whole industry.

According to calculations from the Trading View platform, the correlation between Pi and Bitcoin is negative. This means that its price moves in the opposite direction of BTC. This link is negatively evaluated when Pi Network fails to take advantage of the market recovery. When BTC and other cryptocurrencies increase, it is under pressure to fall in price.

Pi's price performance is in contrast to typical altcoins like ETH. Photo: CoinMarketCap.

Pi Network’s unusual operation also raises big questions about its current supply and token distribution. The project announced that there are 7.71 billion Pi in circulation. But how much of this amount is unlocked, how much the team and the exchange have, are still big questions. On the other hand, it is always under selling pressure when a large amount of cryptocurrency is mined every day and the amount is “defrosted” after being frozen.

Currently, Pi is only publicly traded on a handful of mid-sized exchanges. Binance and Bybit, the two largest platforms currently, still do not list the coin.

According to data from blockchain tracking platform Piscan, there are 163 nodes of the Pi Network blockchain platform located in Vietnam. Meanwhile, the project owns 334 processing points globally. This means that domestic users hold nearly half, equivalent to 49% of Pi's validator nodes.

Blockchain information identifies the distribution of nodes in Vietnam with 75 machines in the Northern region, 34 points in the Central region and 54 units in the Southern region. This number is many times higher than other regions with a large number of Pi miners such as China, India, Korea or Europe.

In addition to the tracking node, the validator is an important part to decide whether a transaction is approved. Currently, Pi Network has only two such units globally. But they are under the management of the project development team, 100% control rate. Therefore, the decentralization of the blockchain platform is questioned.

The concentration of geographically controlled nodes raises fairness concerns. Users in one country have significant control over the operation of the entire network.

Source: https://znews.vn/dong-pi-tang-giam-bat-chap-gia-bitcoin-post1570995.html