Pi Network Faces Crisis Due to Recent Rise of Stablecoins…"Trust Must Be Built"

The peer-to-peer (P2P) virtual asset (cryptocurrency) project Pi Network (PI), also known as "Pi Coin," is facing a crisis. This comes as stablecoins are rapidly rising, increasing the likelihood of their adoption in the retail market over other cryptocurrencies.

On the 1st (Korean time), Kim H. Wong analyzed on their X (formerly Twitter) account, "Recently, stablecoins have gained rapid popularity," and commented, "The popularity of these stablecoins can pose a significant threat to the P2P ecosystem of Pi Coin."

He continued, "In terms of price stability, widespread adoption, and regulatory compliance, stablecoins surpass Pi Coin," adding, "For Pi Coin to maintain competitiveness, it must enhance the ecosystem’s utility and address issues of trust and privacy."

However, Kim H. Wong also noted that Pi Coin still holds some advantages over stablecoins. He stated, "Pi Coin’s mining system is simple—just a tap in the app—making the barrier to entry lower compared to stablecoins. Additionally, the 65 million strong community is another strength of Pi Coin." He further added, "Lastly, in the future, Pi Coin is expected to be usable within DApps on the Pi Network."

Meanwhile, as of 1:30 p.m. on this day, Pi Coin was trading at $0.4924, a 4.78% decrease from the previous day. This is about an 80% drop from its all-time high of $2.8 recorded last February.