Notcoin price has dropped sharply in the past few weeks, erasing over $1 billion in market value.
The NOT token slipped to a low of $0.0091 on Friday, its lowest level since May 29th and by over 64% from its highest point on record.
Notcoin price has lost momentum
Notcoin and Pi Network are different assets in the blockchain industry. Notcoin is a Telegram mini-application that lets people earn tokens by just tapping a button. Anyone with Telegram can use the app and earn tokens.
Pi Network, on the other hand, is a Bitcoin rival that is similar to other proof-of-work tokens. Its main difference is that, unlike Bitcoin, anyone with a smartphone can install the app and start mining.
The other difference is that Notcoin launched its aidrop in June, just a few months after launch while Pi Network has remained in an enclosed mainnet since December 2021.
While the two networks are different, they have two similarities. First, users press a button on the app to mine Notcoin and Pi Coins. Second, the miners’ goal is to ultimately convert the mined tokens into fiat currencies. In Notcoin’s case, many miners have either sold their tokens or held them as assets.
Pi Network path to mainnet launch
Pi Network is expected to launch its mainnet either in 2024 or in 2025. To do that, the developers are working on ensuring that most pioneers have been identified through the KYC process.
In a statement last week, Pi Network said that it had already conducted the KYC process on 12 million people. This means that it has just 3 million users to verify to hit its 15 million target, a process that will take a few months.
The developers also want to have at least 100 Pi applications, which will give it utility. Finally, they will launch the mainnet if market conditions allow.
Therefore, the first lesson for Pi Network is that there is a likelihood that the Pi Coin will drop after launch as many pioneers sell. Besides, most of these pioneers have been actively mining the token for over five years.
This price action has happened in other tokens. For example, move-to-earn tokens like Sweatcoin (SWEAT) and StepN (GMT) initially jumped and then retreated. The two have dropped by over 90% from their all-time high.
Second, there is a possibility that the Pi Coin will have a close correlation with Bitcoin and other altcoins. Notcoin token rose to a record high of $0.030 on June 2nd as Bitcoin was rallying to the monthly high of $72,000.
It then started dropping as Bitcoin lost momentum and moved below $55,000 on Friday. Therefore, there is a possibility that the Pi Coin will also have a correlation with Bitcoin and other altcoins in the long run.