TLDR
- Pi Network experienced a dramatic selloff, losing nearly half of its value within hours.
- Leveraged futures liquidations triggered a cascade of forced sales, exacerbating the market downturn.
- The market’s thin liquidity made Pi Network vulnerable to rapid price drops.
- A significant number of Pi tokens remain unmigrated or locked, increasing pressure on the market.
- Despite an active community, trust in Pi Network has weakened, with many questioning the token’s future.
Pi Network endured a major selloff this week, losing nearly half its value in just a few hours. Analysts attribute the crash to a combination of leveraged trading liquidations, low liquidity, and shaken community trust. The Pi coin price dropped significantly as a result, signaling deeper issues within the network.
Leveraged Futures and Liquidations Triggered the Selloff
The recent crash in Pi Network can be traced to leveraged futures liquidations, which caused a cascading series of forced sales. According to Pi Network Update, the initial selloff started with just a few thousand PI coins changing hands. However, due to the market’s thin liquidity, this small shift in the market was enough to send the token into freefall.
The Pi Crash on a 1 min chart
It's never 1 thing. Leveraged futures get liquidated causing a cascade of sales.
The initial drop could have been caused by the sale of only thousands of Pi on a small exchange.
Until the system shakes out OG miners and billions of unmigrated… pic.twitter.com/WyxSPnOVzl
— r/PiNetwork (@PiNetworkUpdate) September 22, 2025
Experts believe the crash resulted from the interaction between leveraged trading and market structure.
“Leveraged futures get liquidated, causing a cascade of sales,” Pi Network Update noted.
The network’s fragile trading environment and high leverage made it vulnerable to sudden selloffs.
Pi Network Faces Liquidity Issues and Pressure
Since its inception, Pi Network has been significantly concerned about the lack of liquidity. With billions of tokens remaining unmigrated or locked, the market faces persistent pressure. This token overhang continues to affect sentiment, making the coin highly susceptible to price volatility.
Pi Network’s low liquidity has proven to be a double-edged sword. While a smaller market can offer faster gains, it is equally prone to sharp price drops. As analysts point out,
“Until the system shakes out OG miners and billions of unmigrated Pi, the long-term trend is down.”
Lack of Trust Weighs Heavily on Pi Network
One of the critical factors behind Pi Network’s crash is a lack of trust from its own community. Despite the network’s active user base, many members question the token’s future viability.
“The majority of the Pi community isn’t buying Pi, and that’s why I’ve stopped promoting Pi Network as much as I used to,” stated one community member.
Even Pi Network’s recent public appearance by its founders failed to regain confidence in the market. While the event in Seoul was well-attended, it did little to help the token’s price. Traders are concerned that Pi Network’s narrative doesn’t align with its market reality, leading to growing skepticism.
Pi Network faces major hurdles in maintaining community faith. Without addressing issues related to liquidity and credibility, the network may struggle to overcome its price volatility.
