Will Pi follow the path of SHIB? What about the dilemma regarding the supply?

Step into the world of digital currency, where assets are created overnight and dreams ride on fierce speculative waves. Pi Network, once a quiet name in the elite cryptocurrency space, has emerged with a strong allure. Its community is vast, its vision is grand, and its price charts – well, they are a matter of heated debate. The current buzz around PI resembles the initial buzz of Shiba Inu. When it first launched in the cryptocurrency world, SHIB was also a phenomenon, and its hype was on a different level. Its community—known as the SHIB Army—speculates that the price of SHIB will reach 1 dollar, something that has never happened due to the excessive token supply. After this scenario, a pressing question arises as the circulating supply of Pi increases: Will Pi be the next breakout star or will it follow in the footsteps of Shiba Inu - a coin that surged in price due to hype but then decreased in value because of its own supply? The dilemma about the supply of Pi Coin The current circulating supply of Pi Coin is 7.11 billion, with a maximum supply of 100 billion. Although nearly half of the total supply is locked to ensure price stability and reduce volatility, the remainder is being gradually released into the market. This gradual unlocking is intended to encourage the development of the network and ecosystem, but it also means that the market will be flooded with new coins in the coming years. The economic rule is very clear: "If supply increases faster than demand, prices are likely to fall." This is especially true for many cryptocurrencies with a large token supply. A large number of coins can be a price burden unless there is a surge in demand or unique utility or any specific use case. Shiba Inu: A case study on supply and sentiment If you want to see what Pi is struggling with, you don't need to look further than Shiba Inu. Introduced as a meme coin, SHIB has captured the world's imagination with a passionate community and a supply of nearly 590 trillion tokens. Despite the widespread campaigns and endorsements from celebrities, the price of SHIB has never reached the heavily inflated level of 1 dollar - simply because the supply is too large to achieve such a price mathematically without a massive market capitalization. The Shiba Inu team has attempted to offset this by aggressively burning tokens, permanently removing coins from circulation to create scarcity. Although this has provided some price support and fueled speculative price spikes, it has not yet transformed the supply-demand equation enough to provide sustainable exponential price growth. Both currencies face the same fundamental challenge of large supply. However, the supply of Pi is many times lower than that of SHIB and is distributed in a much more controlled manner, with nearly half of the amount locked and focused on rewarding active participants. Theoretically, this could help Pi avoid the extreme dilution that is a curse for SHIB. Compare Pi Coin and Shiba Inu on the Technical Chart Shiba Inu Shiba Inu (SHIB) reached an all-time high of $0.00008845 on October 28, 2021, about 4 years ago during the 2021 bull run. Currently, the price is down 82% from its all-time high. Nonetheless, the larger position of the community (88%) remains optimistic about this coin, according to data from CoinMarketCap. At the time of writing, SHIB is trading at $0.00001530 with a daily decrease of 6%, reflecting a bearish sentiment as it trades below the EMA 200 line and faces rejection from the upper resistance bands. Currently, the market capitalization of SHIB is $9.03 billion.

Pi coin On the other hand, Pi Coin (PI) is performing better, thanks to the buyback strategy of the PI Foundation and the efforts of the PI community. It shows a bullish crossover on the technical chart, indicating bullish sentiment. With the overall shift, PI is expected to continue its upward trend with a good bounce above the $1.5 mark. At the time of writing, PI is trading at $0.8657 with a daily decrease of 31%, indicating a strong correction after recovery. Its current market capitalization is $6.17 billion.

Will Pi Coin definitely fail like Shiba Inu? The Pi Network is not "destined to fail" but it has a long and difficult road ahead. Its supply mechanism is more advanced than Shiba Inu and its community is very committed to creating real value. However, if Pi does not create sustainable demand and establish a distinct position in the highly competitive cryptocurrency world, its price is likely to remain quiet, reflecting the challenging circumstances of other cryptocurrencies with high supply. Ultimately, the future of Pi will not be determined by hype, but by the ability to turn vision into value - and to sustain increasing demand as supply continues to rise.