Pi Network’s recent shift toward GameFi has renewed attention from users and traders, yet the presence of a pronounced sell wall questions long-term price sustainability despite commercial moves focused on payments and in-game rewards. Reported figures indicate a 96% drop in trading volume in Q2 2025, while governance concentration and supply dynamics introduce operational risk for custodians and VASPs.
Supply pressure, unlock schedules and GameFi expectations
The rollout of GameFi integrations and endorsements —including those tied to robotics— triggered price reactions and expectations of incoming liquidity, but technical factors such as massive unlocks, token mobility among large holders and the absence of deep liquid markets form a sell barrier that inhibits price stability. The term “sell wall” refers to a concentration of sell orders that surpasses demand, pushing price downward and restricting upward movement.
Current pressure stems from an estimated unlock of roughly 1.5 billion tokens combined with airdrops and historical accumulation by mobile miners, a structure that creates a holder base inclined to liquidate once real tradable liquidity emerges. Ease of acquisition has therefore generated a cost basis near zero, reinforcing early-exit incentives when price surges occur.
Market signals show concentrated flows and thin structural depth. A record transfer of 6.5 million Pi in a single movement suggests preparation for liquidation by significant holders, while the platform’s closed mainnet status and lack of major exchange listings result in shallow order books and heightened slippage risk. The 96% decline in Q2 2025 volume reflects insufficient structural demand to absorb new supply.
GameFi-driven growth narratives contrast with ongoing transparency and decentralization concerns, as validator control reportedly remains concentrated within the core team, widening the gap between stated decentralization and operational reality. Such dynamics increase the risk of insider-driven sell-offs and weaken institutional trust, a prerequisite for sustainable liquidity.
For custodians and compliance teams, limited depth and concentrated flows elevate market integrity and counterparty exposure, potentially triggering stricter AML scrutiny, risk controls and conditional custody measures during volatility spikes. Incomplete governance disclosures and inconsistent communications have already caused price retracements after announcements viewed as insufficient.
While GameFi integrations offer a functional narrative, supply expansion, liquidity constraints and centralized governance form a sell wall capable of suppressing momentum. For VASPs, custodians and institutions, future integration or listing will depend on Pi Network’s transition to a public mainnet and on tangible evidence of sustainable market demand.
