Investors Shift to Pi Coin as Solana Faces a Sharp Decline

Solana and Pi Coin Market Performance

 

Reference: marketcap

Currently, Solana is priced at $137.72, marking a weekly decline of 18.72%. Its market capitalization stands at $68.61 billion, with a daily trading volume of $5.05 billion.

On the other hand, Pi Coin is witnessing an impressive price surge. At $2.88, Pi Coin has recorded a 69.67% increase over the past week. The coin’s volatile price movement, ranging from $1.99 to $0.61, has further attracted investor interest.

Reference: marketcap

 

Why Is Solana Crashing?

• Ongoing Controversies Affecting Solana: Solana is facing negative sentiment due to the Bybit hack and the Libra Coin scam, causing panic and a massive sell-off among investors.
• Declining Network Activity: Data shows that Solana’s total transfer volume has plummeted from $1.99 billion (November 19, 2024) to just $14.57 million (February 23, 2025). This indicates a significant drop in network utilization.
• Worsening Investor Sentiment: The Net Unrealized Profit/Loss (NUPL) metric suggests that many Solana investors are now at an unrealized loss, making them more pessimistic and leading to further selling pressure.

What’s Driving Pi Coin’s Surge?

• Speculation on Binance Listing: The buzz around a potential Pi Coin listing on Binance has driven many investors to buy in. A community vote with over 222,290 participants has further fueled expectations for Pi Coin’s listing on Binance.
• Pi Network’s Mainnet Launch: After a long wait, Pi Network has finally launched its mainnet, boosting confidence among its supporters.
• Fund Migration from Solana to Pi Coin: Many investors have been shifting their funds from SOL to Pi Coin, hoping to capitalize on its potential gains, especially if it secures a Binance listing.

Is Binance Selling Solana to Buy Pi Coin?

Speculation that Binance is offloading SOL to invest in Pi Coin is gaining traction. Several large SOL transactions have been traced from Binance’s hot wallet to platforms like Wintermute, Kraken, and Coinbase, fueling rumors that Binance is reallocating its assets.

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However, Binance has yet to make an official statement on this matter. While some data points hint at possible fund movements, these claims remain speculative.

Will Solana Recover?

Analyzing price trends, SOL has broken a crucial support level at $140. If selling pressure continues, it could decline further to $120 or even $100. However, if a market recovery takes place, SOL could first retest the $180 level before targeting $258.

Crypto analyst Ali Martinez has also suggested that if SOL drops below $130, it might plummet as low as $65. Nonetheless, this could present a golden opportunity for long-term investors to buy at a lower price.

Final Thoughts

Solana is currently under immense pressure due to negative market sentiment and declining network activity, while Pi Coin is soaring thanks to Binance listing speculation and its mainnet launch. Whether Binance is indeed selling SOL to buy Pi Coin remains uncertain.

Looking ahead, the crypto market remains unpredictable, and both Solana and Pi Coin hold significant potential, depending on project developments and global market sentiment. Will you hold onto Solana or shift to Pi Coin? The decision is yours!