On July 22, 2026, Pi Network officially activated Protocol v25. This marks the project’s largest protocol-level upgrade of the year, with core changes including the introduction of the BN254 elliptic curve cryptography algorithm, support for the Poseidon hash function, and improvements to the mining app’s user interface.
However, the technical upgrade has not generated sustained positive momentum in the market.
Driven by anticipation of the upgrade, PI rebounded from its all-time low of $0.0705 on July 14, reaching as high as $0.103 on July 19. But after the upgrade went live, the price gradually retreated. As of July 23 (UTC+8), PI was trading at approximately $0.09082, down 0.58% over 24 hours, with a market cap of about $994 million and a 24-hour trading volume around $1.1746 million.
Now, the market’s focus is shifting from "Did the upgrade succeed?" to a more fundamental question: Can enhanced technical capabilities translate into real user demand and price support?
What Exactly Did Protocol v25 Upgrade?
According to Pi Network’s official announcement, Protocol v25 is positioned as an upgrade centered on network stability and reliability, while also introducing more efficient and privacy-preserving smart contract capabilities. This upgrade features two core cryptographic changes.
BN254 Cryptography Algorithm
BN254 (also known as Alt-BN128) is an elliptic curve pairing scheme optimized for generating and verifying zero-knowledge proofs. It uses the same cryptographic primitives as Ethereum’s ZK infrastructure. By choosing BN254, Pi Network is aligning its technical roadmap with the broader zero-knowledge (ZK) ecosystem standard, rather than adopting a closed proprietary approach.
The value of BN254 lies in providing developers with foundational tools to build zk-SNARKs and zk-rollup applications. As Layer 2 scaling and privacy computation become mainstream in the industry, this technical foundation positions Pi Network for more advanced Web3 use cases in the future.
Poseidon Hash Function
Poseidon is a hash function specifically designed for efficiency in ZK circuits. Compared to traditional hash algorithms like SHA-256, Poseidon dramatically reduces the computational workload required in zero-knowledge proof circuits, making it the preferred hash function for ZK application development across the blockchain ecosystem.
Both technologies are well-recognized in the industry—BN254 is the de facto standard in Ethereum’s ZK ecosystem, and Poseidon has been adopted by several leading Layer 2 projects. For Pi Network, this upgrade addresses a "compatibility" issue in the developer toolchain: it enables external developers to migrate existing ZK development tools and proof libraries to the Pi Network, without having to rebuild from scratch.
However, it’s important to clarify that Protocol v25 provides the "building blocks," not the "buildings." BN254 and Poseidon are cryptographic primitives for constructing privacy applications—they do not automatically deliver end-to-end privacy payments or complete dApps. Developers still need to design circuits, generate proofs, deploy verification contracts, and establish concrete data privacy rules.
Why Didn’t PI’s Price Keep Rising After the Upgrade?
Reason 1: The Market Priced in the Upgrade Ahead of Time
PI’s price action followed a classic "buy the rumor, sell the news" pattern.
On July 14, PI hit its all-time low of $0.0705. As news of the Protocol v25 upgrade spread, the price rebounded to an intraday high of $0.103 on July 19. When the upgrade officially launched on July 22, the price began to decline, failing to hold the $0.10 threshold.
Trading volume data provides further clarity: on July 20, PI’s daily trading volume surged to $33.7 million. On the day of the upgrade, volume dropped to around $18.5 million, then contracted further. This indicates that the capital driving the previous rally largely took profits around the event, rather than holding for longer-term gains.
This pattern isn’t unique to Pi Network. When Protocol v24 launched in June 2026, a similar trend appeared—prices rebounded modestly before the upgrade, then resumed their downward trend afterward. When the market treats technical upgrades as "events" rather than "turning points," a natural price pullback is the likely outcome.
Reason 2: Ongoing Token Unlocks Continue to Pressure Price
Technical upgrades address capability on the supply side, but PI’s biggest market variable right now is the sheer volume of tokens entering circulation.
According to on-chain data provider PiScan, approximately 1.21 billion PI are expected to enter circulation in 2026, averaging about 6.5 million tokens released daily. From July to December 2026 alone, more than 775.8 million PI are scheduled for unlocking.
As of July 23, PI’s total supply stood at 16.833 billion, with a market cap of roughly $994 million. At current prices, the unlocks scheduled for the second half of 2026 alone are valued at around $70 million. With new supply continuously entering the market, price appreciation would require much stronger incremental demand to absorb this selling pressure.
It’s worth noting that not all unlocked tokens immediately hit exchanges. Some holders may choose to hold, but even if only a portion is sold, the impact on price remains significant given the current average daily trading volume of just $1.17 million.
Reason 3: Real Ecosystem Demand Remains Unproven
Protocol v25 enhances Pi Network’s "technical capabilities," but market valuation ultimately depends on "real usage demand."
Currently, on-chain economic activity on Pi Network remains limited. Although the project claims over 60 million active users, there is a significant gap between user base and on-chain demand. Key indicators such as the number of verifiable dApps, on-chain transaction volume, and developer participation have yet to show growth commensurate with the technical upgrades.
During Pi2Day 2026, Pi Network launched three products—SoloHost, Pi Sign-in, and PiVerify—aiming to expand its business scope from mining applications to identity verification, distributed computing, and external developer services. These product directions align with Protocol v25’s ZK capabilities—especially PiVerify’s identity verification service, which can leverage zero-knowledge proofs for privacy-preserving KYC. However, these products are still in their early stages, and their actual impact on on-chain activity and PI demand cannot yet be quantified.
Can Pi Network Overcome Its Valuation Ceiling Through Ecosystem Growth?
Bullish Factors
Pi Network’s most unique asset is its claimed base of over 60 million users. If this user base can gradually convert into on-chain activity—whether through dApp usage, payments, or developer engagement—it could generate meaningful network effects.
From a technical perspective, zero-knowledge proofs are becoming a major trend in blockchain. Ethereum Layer 2 solutions, zkRollups, and privacy computing are all advancing ZK technology adoption. By aligning with industry standards in Protocol v25, Pi Network at least keeps pace with mainstream technical trends.
Additionally, Pi Network continues to promote mainnet migration. As of January 2026, about 16 million users had completed migration to mainnet. Bringing more users from testnet to mainnet is essential for ecosystem vitality.
Risk Factors
Ongoing token unlocks are the most certain headwind. Over the next 12 months, more than 1.71 billion PI are expected to be unlocked. Without clear demand growth, this steady increase in supply will exert structural pressure on the price.
Insufficient ecosystem applications are another core challenge. A large user base does not automatically translate into strong on-chain demand—real demand for PI only emerges when users start transacting, using dApps, participating in DeFi, or engaging in payment scenarios. These use cases are still in their infancy.
Market competition is also a major consideration. Pi Network faces rivals such as Ethereum L2, Solana, TON, Sui, and Aptos—public chains with mature developer ecosystems and high on-chain activity. To attract developers and applications, Pi Network must prove that its 60 million user base offers a distribution advantage stronger than other blockchains.
What Key Metrics Should You Watch Going Forward?
Short-Term Indicators (Next Few Weeks to Months)
- $0.10 Resistance Level: This is the most immediate technical barrier. After briefly breaking above it on July 19, the price quickly fell back. Whether PI can reclaim and hold this level will be a key short-term sentiment indicator.
- Trading Volume Changes: There’s a huge gap between the $33.7 million daily volume before the upgrade and the roughly $1.17 million after. A rebound in trading volume would signal new capital entering the market.
- Unlock Progress: The pace of over 775.8 million PI unlocking from July to December will directly impact the short-term supply-demand balance.
Mid- to Long-Term Indicators (Next Several Months to a Year)
- Number of dApps and On-Chain Transactions: These are core measures of ecosystem activity. Both verifiable dApp count and transaction volume are still limited.
- Developer Participation: Protocol v25 lowers the barrier for ZK application development, but it remains to be seen whether developers will actually build in the Pi ecosystem.
- Product Adoption: Whether products like PiVerify and SoloHost can attract external enterprises and developers will determine if Pi Network can evolve from a "mining platform" to a "service platform."
Conclusion
Protocol v25 is a significant upgrade to Pi Network’s technical infrastructure. The integration of BN254 and the Poseidon hash function brings its zero-knowledge proof capabilities in line with industry standards, laying the groundwork for more advanced Web3 applications.
But technical upgrades alone do not directly create price support.
PI’s current price dilemma—$0.09082, down about 79.92% from its all-time high—stems from a supply-demand imbalance: ongoing token unlocks increase market supply, while ecosystem demand remains insufficient to absorb it. Protocol v25 answers the question of "can it be done," but the market is waiting for proof of "is anyone using it."
Over the next 6 to 12 months, the real test for Pi Network is not further technical advancement, but whether it can convert its 60 million users into genuine on-chain economic activity, with demand growth outpacing token supply. Until then, the price impact of technical upgrades is likely to remain limited and short-lived.
FAQ
Q1: What direct impact does the Protocol v25 upgrade have on PI’s price?
Around the Protocol v25 launch, PI’s price followed a classic "buy the rumor, sell the news" trajectory. The price rebounded from $0.0705 to $0.103 before the upgrade, then fell back to around $0.09 after. The upgrade itself does not directly create token demand; short-term price effects are mainly driven by market sentiment and trading behavior.
Q2: What other major upgrades are planned for Pi Network?
The Pi Network core team has confirmed that Protocol v26 is already scheduled. Throughout 2026, Pi has been advancing a series of protocol upgrades from v19 to v26, with each version building on the last. The specific timeline will follow official announcements.
Q3: How significant is PI’s token unlock pressure?
Roughly 1.21 billion PI are expected to enter circulation in 2026, averaging about 6.5 million per day. From July to December alone, over 775.8 million PI are set to be unlocked. This steady increase in supply is one of the main structural pressures on PI’s price.
Q4: What stage is Pi Network’s ecosystem development at currently?
Pi Network is transitioning from a "mining app" to a "service platform." During Pi2Day 2026, it launched SoloHost, Pi Sign-in, and PiVerify—three products aimed at external developers and enterprises. However, core ecosystem indicators like on-chain transaction volume, dApp count, and developer activity remain in early stages, with large-scale on-chain demand yet to materialize.
Q5: Is it possible for PI’s price to break above $0.10 in the future?
$0.10 is a key psychological and technical resistance level. A short-term breakout would require a rebound in trading volume and new buying interest; a sustained move higher in the medium to long term would require demand growth to outpace token unlocks. Currently, neither condition is clearly in place.
