The cryptocurrency market has exhibited encouraging signs of rejuvenation lately, primarily driven by Bitcoin’s significant rise from below $84,000 to nearly $94,000. Numerous altcoins have outperformed expectations, showcasing impressive double-digit increases, particularly among major players such as ETH, SOL, ADA, LINK, BCH, and HYPE.

In sharp contrast, the Pi Network’s native token has only managed a 2% gain since yesterday, which raises questions about its performance. Notably, other altcoins, including PUMP and PEPE, surged by 17% and 19%, respectively, while ENA saw a rise of 16%. Consequently, Pi Network’s market position deteriorated, dropping to the 64th rank on CoinGecko.

PI Price on December 3. Source: CoinGecko

The underlying reason for this notable lag can be traced back to Pi’s performance over the past month. While the entire cryptocurrency landscape faced significant downturns and double-digit losses across top assets like BTC and ETH, Pi Network’s token managed to remain resilient, occasionally rising in value, largely dictated by ecosystem updates, regulatory rumors, and speculation.

However, the outlook for Pi Network is concerning due to the projected average daily token unlocks, which are set to exceed 6.2 million for the coming month, significantly higher than the 4.5 million average seen in October. These unlocks may trigger larger sell-offs if investors choose to liquidate their holdings immediately after receiving them.

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This situation leads to a cautiously optimistic outlook, hinging on investor reactions to future token releases.