“RIP to the bags still being held. Touch some grass, seriously,” the analyst said.

Pi Network’s PI has been on a massive price decline over the past several months, causing many community members to lose patience and call the project a scam.

Meanwhile, the bearish conditions of the broader crypto market and some other important factors signal that the asset could experience a further downfall in the near future.

‘Not a Healthy Correction’

It seems rather absurd that PI was trading at around $3 nearly a year ago, given its current valuation. Last week, the token slipped to a new all-time low of approximately $0.13, and as of press time, it is worth roughly $0.14, representing a staggering 95% collapse from the historical peak.

According to X user pinetworkmembers, the decline is not “a healthy correction,” but a market pricing of the biggest issues of the controversial project behind the cryptocurrency:

“That’s not a healthy correction, that’s the market finally pricing in the obvious: no functioning mainnet after years of promises, no real-world utility beyond ‘keep the app open’, and a whole lot of mobile mining theater.”

They  claimed that at first PI was sold as “revolutionary,” but eventually ended up appearing like “the longest-running pyramid scheme dressed up as Web3 empowerment for hopeful retirees and late-night scrollers.”

They opined that Pi Network users (known as Pioneers) should admit that the experiment failed and redirect their energy toward something more productive that can actually bring them profit.

“RIP to the bags still being held. Touch some grass, seriously,” the X user concluded.

This isn’t the first time the project has become the subject of criticism. Earlier this month, Pi Network’s Core Team celebrated the so-called “Moderator Appreciation Day.” The event aimed to acknowledge moderators and praise their role in building and supporting the community.

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The statement, however, triggered significant backlash, as many members argued that the project should focus on more pressing issues, such as expediting the verification process and related tasks.

What Lies Ahead?

Several concerning factors, including the upcoming token unlocks, suggest PI’s price could fall further in the short term. Data shows that nearly 250 million coins will be released over the next 30 days, resulting in an average daily unlock of more than 8.3 million.

February 13 is expected to be the record day, when 23.6 million PI will be freed up. While the development doesn’t guarantee an additional price collapse, it can be considered bearish because it increases the selling pressure.

On the other hand, PI’s Relative Strength Index (RSI) signals that a rebound could also be on the horizon. The technical analysis tool measures the speed and magnitude of recent price changes and helps traders identify potential reversal points. It varies from 0 to 100, and ratios below 30 indicate that PI has entered oversold territory and may be due for a resurgence. According to RSI Hunter, the RSI currently stands at around 35.

Bitcoin and Ethereum led a broad rally in risk assets as traders priced in cooling inflation and firmer macro signals, but the rebound for Ether came with a caveat: derivatives markets remained largely cautious. The on-chain picture shows a liquidity landscape that is still hunting for clear catalysts, even as Ether clears key price resistances. In short, a positive price move does not yet translate into a confident shift in momentum, with traders continuing to weigh the risk of another leg lower as macro headlines evolve.

Key takeaways

• Ethereum maintains dominance in total value locked (TVL), but scrutiny of layer-2 scaling and its subsidy model persists as investors assess long-term efficiency.
• Ether’s inflation metric rose to ~0.8% over the last 30 days as on-chain activity cooled, while macro concerns kept derivatives in a cautious, risk-off stance.
• ETH 2‑month futures traded at roughly a 3% premium to spot, below the 5% neutral threshold, signaling tepid optimism from Ether traders despite the rally.
• Year-to-date, Ether has underperformed the broader crypto market by about 9%, raising questions about where capital is flowing and how much is staying tethered to Ethereum’s core ecosystem.
• Deposits on the Ethereum base layer account for roughly 58% of the entire blockchain industry; including Base, Arbitrum, and Optimism, that figure rises to about 65%. The largest DApp on the Ethereum base layer holds more than $23 billion in TVL, underscoring Ethereum’s ongoing scale advantage over competitors like Solana, where the top DApp’s TVL remains far smaller.

Tickers mentioned: $BTC, $ETH

Sentiment: Bearish

Price impact: Positive. Ether reclaimed the $2,100 level as the broader market rose, but the bounce remains tentative amid persistent risk-off signals in the derivatives space.

Trading idea (Not Financial Advice): Hold. The current price recovery lacks clear, durable conviction from buyers, and any sustained advance will depend on a shift in risk appetite and improved on-chain activity.

Market context: The price move comes within a broader environment of liquidity fluctuations and macro uncertainty, where flows into crypto often track traditional risk indicators and regulatory chatter as much as technical levels.

Why it matters

The Ethereum ecosystem remains the cornerstone of DeFi and NFT activity, with the base layer continuing to attract the majority of on-chain value. Even as the chain holds a commanding TVL lead, the narrative around layer-2 solutions—how they decentralize, secure, and scale applications—has grown more nuanced. Ethereum’s current stance reflects a tension between the heavy usage that has historically fueled its dynamics and the structural questions about how best to sustain growth without compromising security or centralizing risk through bridges or trusted constructs.

Data from ultrasound.money shows Ether’s supply growth accelerating to about 0.8% on an annualized basis over the last month, a sign that the burn dynamics intended to counter inflation are not as punitive as hoped when network demand softens. The built-in burn mechanism relies on base-layer data processing activity; when that activity wanes, the net effect can be a modest supply expansion, tempering the deflationary narrative some bulls have pushed. This dynamic aligns with the observed softness in on-chain activity and the tepid appetite in the derivatives market, where a 3% premium for 2‑month Ether futures sits below the 5% neutral threshold—an indication that traders are not aggressively pricing in rapid upside (Laevitas data: laevitas.ch).

On the fundamental side, the ladder of TVL metrics continues to illustrate Ethereum’s centrality. The Ethereum base layer alone accounts for the majority of blockchain deposits, while including the leading layer-2 ecosystems—Base, Arbitrum, and Optimism—pushes the share to well above two-thirds of industry activity. In contrast, Solana’s leading DApp sits far behind, a reminder that capital has not yet pursued a broad shift away from Ethereum despite competition. This shape of the market matters for developers evaluating where to build and for investors weighing the durability of Ethereum’s moat in a multi-chain era.

The pace of adoption in layer-2 networks is another focal point. Vitalik Buterin has argued that the L2 path to decentralization has proven more challenging than originally envisioned, given reliance on multisig-controlled bridges and security trade-offs. In interviews and analyses, he has signaled a pivot toward base-layer scalability while acknowledging that privacy-focused features and application-specific designs on L2s will continue to influence capital allocation patterns. The inherent tension between scalability and security is central to investors’ risk calculus as they parse long-term returns from layer-1 vs. layer-2 deployments. For context, related discussions emphasize the difference between “real DeFi” and centralized yield constructs, underscoring how policy choices and technology design shape the sustainable value proposition of Ethereum’s ecosystem (Vitalik Buterin commentary: Ethereum scaling pivot).

Another facet of the narrative is the relationship between price performance and liquidity provision. Ether’s price recovery has not yet translated into a broad-based rally in the derivatives market, where risk-off sentiment remains visible in pricing and open interest. While the disappearance of a rapid down-leg is a relief for holders, the absence of robust upside pressure suggests traders remain cautious, watching macro data and regulatory signals for any signs that capital will pivot back toward higher-yield opportunities. In this context, the chart of Ether against the overall crypto capitalization illustrates a persistent lag, with Ether’s performance this year lagging the broader market by roughly 9% as capital rotates among competing use cases and networks (TradingView: ETH/USD vs. total crypto capitalization).

Finally, the market’s attention remains split between long-term fundamental deployments and near-term price movements. The burn mechanism’s trajectory depends on on-chain activity, while the composition of TVL—especially the share captured by L2s—will influence how investors perceive Ethereum’s ability to sustain network effects. The ongoing debate about L2 security, decentralization, and throughput feeds into price dynamics and shapes the risk-reward calculus for traders and developers alike. As developers experiment with privacy-focused features and bespoke, application-specific layer designs, Ethereum’s scale narrative remains central to the crypto economy’s evolution, even as other chains strive to carve out niche advantages.

What to watch next

• Monitor Ether’s price action around the $2,200 area and whether buying pressure gains enough momentum to sustain a breakout.
• Track Vitalik Buterin’s public comments and any policy shifts from major layer-2 projects regarding decentralization and security architecture.
• Observe on-chain activity metrics and the burn rate versus supply growth using ultrasound.money data to gauge deflationary pressure.
• Watch DefiLlama for TVL movements between the Ethereum base layer and its Layer-2 ecosystem to assess flow shifts across the ecosystem.
• Keep an eye on macro indicators and central bank signals that influence liquidity and risk sentiment, as these ultimately drive derivative pricing and capital allocation.

Sources & verification

• ETH price levels and movement relative to the $2,150 threshold and recovery to $2,100+ zones.
• 2-month Ether futures annualized premium data from Laevitas as a gauge of derivatives sentiment.
• ETH supply growth metrics (0.8% annualized over the last 30 days) from ultrasound.money.
• TVL breakdowns and main chain vs. Layer-2 deposits from DefiLlama data.
• Official commentary by Vitalik Buterin on Layer-2 decentralization and the burn mechanism, including linked analyses.

What the numbers say about the market today

Market breadth has improved modestly as Ether reclaims price levels, yet the path to a sustainable rally remains uncertain. The interplay between layer-2 subsidies, base-layer scalability, and on-chain activity will continue to shape price dynamics and capital flows. Investors are watching for signals that derivatives markets finally align with price action, suggesting a broader willingness to take on risk. Until then, Ether’s leadership in TVL and ongoing L2 development will be essential barometers for the health and direction of the crypto ecosystem.

TLDR:

• Bitcoin death cross forms on daily charts with moving averages positioned far above current price 
• Weekly close below $69K-$72K support could trigger next leg down into deeper correction territory 
• Binance withdrawal data shows whale accumulation doubled to 13.3 BTC average since late January 
• Price must reclaim $82K then mid-$90Ks to establish bottoming pattern and reverse bearish trend
  

Bitcoin faces a critical test as price slides into the $69,000 to $72,000 support zone amid mounting bearish technical signals.

A death cross has formed on daily charts while weekly moving averages remain far overhead. Traders warn that a clean weekly close below this range could trigger a deeper correction phase.

The current price action shows weak bounce attempts with consistent rejections at key resistance levels.

Death Cross Formation Signals Bearish Trend Structure

The technical setup has deteriorated significantly as BTC continues its descent from higher levels. Daily charts now display an active death cross with the 50-day and 200-day moving averages positioned miles above current price. This configuration represents a classic bearish trend structure where rallies meet aggressive selling pressure.

Weekly timeframes confirm the concerning technical picture. Price remains trapped below the exponential moving average ribbon with repeated rejection attempts at that level.

Any upward moves are functioning as retests rather than genuine reversals. Trader @DamiDefi emphasized that pumps are getting sold while supports face continuous stress tests.

The $69,000 to $72,000 band now represents the final line of defense. This zone determines whether the market experiences a temporary shakeout or enters a prolonged correction phase. Price behavior at this level will dictate the trajectory for coming weeks and potentially months.

A breakdown below $69,000 on a weekly closing basis would open the next leg down. The accumulation phase would become considerably more painful before any bullish momentum could rebuild.

Historical patterns suggest that losing major support zones often leads to cascading liquidations and accelerated downside movement.

Support Test Occurs Despite Whale Buying Activity

The bearish price action persists even as on-chain data reveals unusual buying patterns. Binance exchange metrics show a significant increase in average withdrawal sizes during the decline.

The 14-day simple moving average of mean outflows has doubled from approximately 6 BTC on January 28 to 13.3 BTC by February 8.

This withdrawal pattern indicates whale and institutional activity at current price levels. Large entities appear to be accumulating Bitcoin around $69,000 despite the technical deterioration.

The average outflow size represents the highest level recorded since November 2024, according to CryptoOnchain data.

However, this accumulation has not yet translated into price stability or reversal. The gap between falling prices and rising withdrawal sizes creates a divergence worth monitoring. Smart money appears to be positioning for longer-term gains while accepting near-term downside risk.

Moving coins off exchanges to cold storage traditionally reduces immediate selling pressure. Yet the current market structure suggests this effect remains insufficient to halt the decline.

Bulls need price to reclaim $82,000 first, then push back into the low-to-mid $90,000s to establish a credible bottoming range. Without holding the $69,000 to $72,000 support zone, those recovery targets become increasingly distant possibilities.

Beast Industries, the entertainment company founded by YouTuber Jimmy “MrBeast” Donaldson, is acquiring Step, a mobile banking app focused on teenagers and young adults, marking its most significant push into finance to date.

In a post to X on Monday, Donaldson said the motivation behind the acquisition was to equip young people with the tools and guidance needed to navigate personal finance from an early age.

Beast Industries CEO Jeff Housenbold said, “Financial health is fundamental to overall wellbeing, yet too many people lack access to the tools and knowledge they need to build financial security.”

The acquisition cost was not disclosed.

The YouTube channel’s expansion into finance comes after it received a $200 million investment from Ethereum treasury firm BitMine Immersion Technologies in January and a separate trademark filing for “MrBeast Financial” in October.

That trademark filing mentioned “cryptocurrency exchange services,” “cryptocurrency payment processing,” and “cryptocurrency via decentralized exchanges.”

However, it isn’t clear whether that trademark filing is related to the Step acquisition.

Cointelegraph reached out to Beast Industries for comment, but didn’t receive an immediate response.

Step scales to 6.5 million users in 8 years

The Step app aims to help Gen Z users manage money, build credit, earn rewards, and deepen their financial literacy. Spending accounts are Federal Deposit Insurance Corporation-insured through Evolve Bank & Trust.