Pi Network Protocol v25 officially launches: Why didn’t the technical upgrade help the PI price hold at $0.10?

On July 22, 2026, Pi Network officially activated Protocol v25. This is the largest protocol-layer update for the project in 2026. The core changes include introducing the BN254 elliptic curve cryptography algorithm, supporting the Poseidon hash function, and optimizing the user interface for the mining application.

However, the technical upgrade did not generate sustained positive feedback in the market.

PI rebounded from its historical low of $0.0705 on July 14 on upgrade expectations, reaching as high as $0.103 on July 19. But after the upgrade officially went live on July 22, the price gradually fell. As of July 23 (Beijing time), PI is trading at about $0.09082, down 0.58% over the past 24 hours. Its market cap is about $994 million, and its 24-hour trading volume is about $1.1746 million.

Market attention is shifting from “whether the upgrade is successful” to a more fundamental question: can improvements in technical capability translate into real usage demand and price support?

What exactly was upgraded in Protocol v25?

Pi Network’s official announcement describes Protocol v25 as an upgrade focused on network stability and reliability, while also introducing smarter-contract capabilities that are more efficient and protect privacy. The upgrade includes two underlying 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 the ZK infrastructure employed by Ethereum. By choosing BN254, Pi Network’s technical route aligns with the broader ZK ecosystem standards rather than adopting a closed proprietary solution.

BN254’s value lies in providing developers with the foundational capability to build zk-SNARKs and zk-rollup applications. Against the backdrop of Layer2 scaling and privacy computing becoming mainstream in the industry, this technical reserve may enable Pi Network to access more complex Web3 application scenarios in the future.

Poseidon hash algorithm

Poseidon is a hash function designed specifically for ZK circuit efficiency. Compared with traditional hash algorithms (such as SHA-256), Poseidon significantly reduces the computation operations required in zero-knowledge proof circuits, making it a preferred hash function for ZK application development across the blockchain ecosystem.

These two technologies themselves are highly recognized in the industry—BN254 is a de facto standard in Ethereum’s ZK ecosystem, and Poseidon has been adopted by multiple major Layer2 projects. For Pi Network, this upgrade addresses a “compatibility” issue in its developer toolchain: enabling external developers to migrate existing ZK development tools and proving libraries to the Pi Network without needing to rebuild from scratch.

But it should be made clear that Protocol v25 provides “building blocks,” not “a building.” BN254 and Poseidon are cryptographic primitives for constructing privacy applications, and they do not automatically produce end-to-end private payments or a complete dApp. Developers still need to create circuits, generate proofs, deploy verification contracts, and design specific data privacy rules themselves.

Why didn’t PI keep rising after the upgrade?

Reason 1: The market priced in the upgrade expectations in advance

PI’s price action shows a typical pattern of “buy the expectation, sell the fact.”

On July 14, PI hit its historical low of $0.0705. Then, as the Protocol v25 upgrade news gradually gained traction, the price rebounded to an intraday high of $0.103 on July 19. However, when the upgrade was officially launched on July 22, the price started to fall again and failed to hold above the $0.10 level.

Trading volume data provides clearer evidence: on July 20, PI’s daily trading volume climbed as high as $33.7 million; on the day of the upgrade, trading volume fell to about $18.5 million, and then shrank further. This suggests that the capital driving the earlier rally mostly chose to take profits around the event’s rollout, rather than continuing to hold.

This pattern is not unique to Pi Network. When Protocol v24 went live in June 2026, it also showed a similar pattern—prices saw a modest rebound before the upgrade, then resumed a downward trend after the upgrade. When the market views a technical upgrade as an “event” rather than a “turning point,” a natural pullback in price is highly likely.

Reason 2: Ongoing token unlocks continue to weigh on price

The technical upgrade solves a capability issue on the supply side. But PI’s biggest current market variable comes from the supply side’s quantity.

According to monitoring by the on-chain data platform PiScan, an estimated 1.21 billion PI tokens will enter circulation throughout 2026, with about 6.5 million tokens released per day on average. Only between July 2026 and December 2026, more than 775.8 million PI tokens are scheduled to unlock.

As of July 23, PI’s total supply is 16.83B tokens, with a market cap of about $994 million. At the current price, the unlock amount for just the second half of 2026 is worth about $70 million. Continuous new supply flowing into the market means that price increases require stronger incremental demand to absorb this sell pressure.

It should be noted that not all of these unlocked tokens necessarily flow immediately into the trading market. Some token holders may choose to keep holding. But even if only a portion converts into actual sell orders, in a liquidity environment where daily trading volume is currently only about $1.17 million, the marginal impact on price can still be significant.

Reason 3: Ecosystem demand has not been validated yet

Protocol v25 improves Pi Network’s “technical capability,” but final market pricing still needs “real usage demand” to support it.

Currently, Pi Network’s on-chain economic activity remains limited. Although the project claims to have more than 60 million active users, there is a significant gap between user scale and on-chain demand conversion. Metrics such as the number of verifiable dApps in the ecosystem, on-chain transaction volume, and developer participation have not shown growth that matches the technical upgrade.

During Pi2Day 2026, Pi Network launched three products: SoloHost, Pi Sign-in, and PiVerify. The project attempted to expand the business boundary beyond mining applications to identity verification, distributed computing, and external developer services. These product directions are synergistic with Protocol v25’s ZK capabilities—especially PiVerify’s identity verification service, which can leverage privacy-preserving KYC verification using zero-knowledge proofs. However, these products are still in early stages, and their impact on on-chain transaction volume and PI demand cannot yet be quantified.

Can Pi Network break through the valuation bottleneck through ecosystem growth?

Bullish factors

Pi Network’s most unique resource is its claimed user base of more than 60 million. If this user group can gradually convert into on-chain activity—whether through dApp usage, payment scenarios, or a developer ecosystem—it could generate some network effects.

From a technical roadmap perspective, zero-knowledge proofs are becoming an important direction in the blockchain industry. Ethereum Layer2, zkRollup, and privacy computing are all pushing ZK technology into real-world deployment. Pi Network’s choice to align with industry standards in Protocol v25 keeps it at least technically aligned with mainstream trends.

In addition, Pi Network is steadily pushing forward with mainnet migration. As of January 2026, about 16 million users have completed the mainnet migration. More users moving from testnet to mainnet is a necessary condition for ecosystem activity.

Risk factors

Supply-side release pressure is currently the most certain bearish factor. Over the next 12 months, more than 1.71 billion PI tokens are expected to unlock. If demand growth is unclear, continuous increases in supply will structurally suppress the price.

Insufficient ecosystem applications are another core challenge. A large user base does not automatically mean strong on-chain demand—only when users start transacting on-chain, using dApps, participating in DeFi, or engaging in payment scenarios will real demand for PI emerge. At present, the maturity of these scenarios remains limited.

Market competition is also not negligible. Pi Network’s competitors include Ethereum L2, Solana, TON, Sui, Aptos, and other public chains that already have mature developer ecosystems and higher on-chain activity. To attract developers and applications, Pi Network needs to prove that its 60 million user base can convert into a distribution advantage that is more compelling than other public chains.

Which key indicators should be watched going forward?

Short-term indicators (the next few weeks to months)

• $0.10 resistance level: This is the most direct technical checkpoint right now. After briefly breaking above it on July 19, the price quickly pulled back. Whether it can effectively hold above this level will be an important observation point for near-term market sentiment.
• Changes in trading volume: There is a huge gap between the $33.7 million daily trading volume before the upgrade and the roughly $1.17 million daily trading volume after the upgrade. A rebound in trading volume is a signal of new capital entering the market.
• Unlock progress: The unlock schedule of more than 775.8 million PI from July to December will directly affect short-term supply-demand balance.

Mid-to-long-term indicators (the next few months to one year)

• Number of dApps and on-chain transaction volume: This is the core metric for measuring ecosystem activity. Currently, the number of publicly verifiable dApps and the scale of on-chain transactions remain limited.
• Developer participation: Protocol v25 lowers the development barrier for ZK applications, but whether developers truly enter the Pi ecosystem to build needs continuous monitoring.
• Product rollout progress: Whether products like PiVerify and SoloHost can attract external enterprises and developers to use them will determine whether Pi Network can transition from a “mining platform” to a “services platform.”

Conclusion

Protocol v25 is an important upgrade to Pi Network’s technical infrastructure. The introduction of BN254 and Poseidon hash functions aligns it with industry standards in zero-knowledge proof capability, providing technical prerequisites for more complex Web3 application scenarios in the future.

But a technical upgrade by itself does not directly create price support.

PI’s current price dilemma—at $0.09082, down about 79.92% from its historical high—stems from an imbalance between supply and demand: ongoing token unlocks increase market supply, while ecosystem demand has not yet formed sufficient capacity to absorb it. Protocol v25 addresses the question of “whether it can be done,” while the market is waiting for evidence of “who is using it.”

Over the next 6 to 12 months, Pi Network’s real test is not further enhancement of technical capability, but whether it can convert 60 million users into real on-chain economic activity and make the growth rate of demand exceed the token supply release rate. Before that, the price impact from technical upgrades may still be limited and temporary.

FAQ

Q1: What direct impact does the Protocol v25 upgrade have on the PI price?

Around the time Protocol v25 went live, PI followed a typical “buy the expectation, sell the fact” pattern. Before the upgrade, the price rebounded from $0.0705 to $0.103; after the upgrade, it fell back to around $0.09. The technical upgrade itself does not directly create token demand, and the short-term price impact mainly shows up through market sentiment and trading behavior.

Q2: What other important upgrade plans does Pi Network have in the future?

Pi Network’s core team has confirmed that Protocol v26 has been scheduled for the next phase. Throughout 2026, Pi has been推进ing the serialized protocol upgrades from v19 to v26, with each version built on the previous one. The specific timeline will be based on official announcements.

Q3: How strong is the token unlock pressure for PI?

For all of 2026, an estimated 1.21 billion PI tokens are expected to enter circulation, about 6.5 million per day on average. Only between July 2026 and December 2026, more than 775.8 million PI tokens are planned to unlock. Continuous increases in supply is one of the main structural pressures currently facing the PI price.

Q4: What stage is Pi Network’s ecosystem development currently in?

Pi Network is transitioning from “mining applications” to a “services platform.” During Pi2Day 2026, it launched three products for external developers and enterprises: SoloHost, Pi Sign-in, and PiVerify. However, core ecosystem metrics such as on-chain transaction volume, the number of dApps, and developer activity are still in the early stage, and scaled on-chain demand has not yet formed.

Q5: Could PI price break above $0.10 in the future?

$0.10 is an important psychological level and technical resistance zone right now. A short-term breakout requires trading volume to rebound and new buy orders to provide support. A mid-to-long-term breakout requires ecosystem demand growth to outpace the token supply release rate. Currently, neither of these conditions is clearly in place.