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The latest market report indicates that the Pi Network is moving towards a price-pegged mechanism on the blockchain. According to reports, the community recently encountered smart contract code related to Chainlink, which directly mentioned the native cryptocurrency Pi Coin. The price of Pi has risen 8% today, reaching $1.50, and investors continue to be optimistic about the price reaching $5 or even higher.
Will the Pi Network Implement a Dynamic Pegging Mechanism?
The Pi Network community recently discovered a smart contract code featuring Chainlink, which directly referenced the Pi Coin. This code suggests the implementation of a dynamic pegging mechanism, which could potentially indicate plans to stabilize the value of Pi through an automated minting and burning system.
If confirmed, this discovery suggests that the Pi Network may be implementing a price-pegging mechanism to manage volatility. This approach is commonly used for stablecoins like USDT and USDC, which peg their value to assets like the US dollar or gold. This mechanism further achieves price stability, providing a more predictable and less volatile trading environment.
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Some market analysts believe that by providing a more reliable valuation method, the pegged Pi coin can attract more users and investors. They also believe that as an algorithmic stablecoin, Altcoins may gain greater acceptance in daily transactions and the decentralized finance (DeFi) ecosystem. However, the PiCoreTeam still needs to confirm the authenticity of this pegging mechanism.
What Will the Price of the Pegged Pi Coin Be?
The latest details on the Pi Network's pegging mechanism highlight a unique approach to stabilizing its value through a dynamic algorithmic peg. According to reports, the smart contract linked to Chainlink will automatically manage the supply of Pi coins based on price fluctuations. It will achieve this in two ways:
- Mint additional Pi coins when the price falls below the target.
- Burn existing Pi coins when the price exceeds the target.
As shown in the image, the anchor token is named Pi Coin, with a target price of $314,159 (represented as 314,159 × 10¹⁸ Wei, the smallest unit of Ethereum). When the price drops below the target, the minting mechanism will be triggered; when the price rises above the target, the burning mechanism will be activated.
Binance Lists Immediate Price Target
The latest reports indicate that the Pi Network cryptocurrency may be listed on the Binance crypto exchange immediately. This could bring a significant boost in liquidity, potentially driving up the price. With the Binance listing, the Pi Coin could climb into the top 10 cryptocurrencies by market capitalization.
The price of the Pi coin has shown resilience, maintaining a solid support level of $1.30 despite recent market volatility. Analysts point to this as a bullish signal, suggesting that the Pi cryptocurrency may be preparing for a significant upswing. The market sentiment is becoming optimistic, with more and more people calling for a potential rebound that could push PI to the $5 mark.
