Pi coin and the Pi Network are not new to the market. Chances are that you may have heard of it if you were around during the previous bull market. However, this is one of the projects that were initially shrouded by uncertainty and a slow launch did not help things.

Fast forward to 2024 and Pi network prospects have improved significantly. But before we dive into the latest developments, it is important to first understand what the Pi network and its similarly-named cryptocurrency are all about.

What is Pi network?

The Pi network is an ambitious project that aims to bring crypto accessibility to everyone. The project allows users to earn Pi coins by mining them on their phone, thereby using their mobile devices to power the network. Here are some of the network’s main features:

  • The network plans to support development of dapps and other services that will use Pi coins for transactions.
  • The network is community focused and its community of users dubbed pioneers will validate transactions and secure the network.
  • Users will be able to mine Pi coins on the Pi app by simply logging in and tapping at least once every 24 hours.

Pi network mainnet launch inbound

The Pi network’s official X account recently confirmed that the network’s mainnet launch will take place on 31 December. According to the announcement, this will mark a major milestone for the network. This is mainly because it will facilitate the transition in favor of broader integration into the crypto market.

https://x.com/SusDrones/status/1867607756368216328

The Pi mainnet launch could also signal that it is full speed ahead not only for the network but for the holders of its native coin Pi.

Assessing potential impact on Pi price action

Pi has been experiencing a significant surge in market excitement lately. This was more in tune with the overall bullish sentiment in the market. However, this new milestone could pave the way for more robust price action as investors could potentially react in favor of more accumulation and HODLing.

Pi has 68 million coins in circulation according to Coinmarketcap (self-reported) although the maximum supply is 100 billion coins. It had a $3.98 billion marketcap at the time of writing, highlighting robust interest.

The high max supply suggests that there will be vesting along the way, which could increase its circulating supply and potentially dilute price significantly in the future. About 80% of the cryptocurrency’s total supply will be locked for a 3-year vesting period in an effort to maintain price stability.

The remaining 20% have been set aside for distribution to other key areas. For example, 10 percent of them will be set aside for ecosystem growth, 65% for mining rewards, 5% for exchange liquidity and finally, the remaining percentage will be given to the project’s core team.

Conclusion

Pi cryptocurrency exchanged hands at $57.86 at press time. Excitement around the mainnet launch will likely fuel more demand in the next 2 weeks. There is a possibility that it could rally above $100. It previously rallied as high as $136 in March.

The mainnet launch is also expected to attract listings on major exchanges. If that happens, then the Pi coin may tap into more potential liquidity flows in the short term, which could result in an explosive rally.

Short to mid-term bullish activity may result from the launch. However, any demand and bullish attempts in the long term might be watered down. Investors my shy off in the longer term, especially on account of the large maximum supply relative to the current circulating supply.

As always, a bullish outcome is not a guarantee and it would be wise to move cautiously. Also consider conducting more due diligence before investing in Pi.

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