Why did the price of Pi Network suddenly surpass Bitcoin and Ethereum?

Pi Network’s price has risen nearly 20% in the past 30 days, while Bitcoin and Ethereum have dropped by 21% and 27%, respectively. The main reasons for Pi’s strong performance include continued accumulation by a major whale, who now holds 377 million Pi; the release of a whitepaper supporting the MICA regulatory framework; rumors of ISO regulatory filing; investment in OpenMind to enter the AI sector; and major upgrades to the App Studio and node infrastructure.

Whale Scoops Up 377 Million Pi, Becomes Key Market Driver

(Blue line: Pi, Red line: Bitcoin, Green line: Ethereum, Source: Trading View)

Why did Pi Network’s price suddenly outperform Bitcoin and Ethereum? First, a heavyweight player has been steadily accumulating the token over the past few weeks. This whale bought 375,214 Pi last Saturday, bringing his weekly purchases to over 2.4 million, now worth more than $580,000. He now holds 377 million Pi worth about $91 million, making him the largest holder outside of the Pi team.

Such large-scale, consistent buying has provided significant support for Pi Network’s price. While Bitcoin and Ethereum saw sharp declines due to macroeconomic pressures and market panic, the whale’s ongoing accumulation provided strong buy-side support for Pi Network. More importantly, the whale’s actions demonstrate strong confidence in Pi Network’s long-term value, a confidence that has spread to the market and attracted more investor attention.

The whale’s accumulation strategy is also noteworthy: he chose to increase his position while the broader market was falling—an example of the classic “be greedy when others are fearful” approach often exhibited by smart money. While Bitcoin and Ethereum fell by 21% and 27%, respectively, this whale bought over 2.4 million Pi in recent weeks, indicating he believes the current price is seriously undervalued. Such contrarian moves often occur during market bottoms, suggesting Pi Network may have already found a short-term bottom.

Furthermore, becoming the largest holder outside of the Pi team is highly symbolic. This means the whale’s confidence in Pi Network even surpasses that of many early participants and investors. A $91 million position in a relatively new crypto project is astonishing—such a capital allocation is usually reserved for those with deep research and high conviction in a project’s fundamentals and long-term prospects.

MICA Regulatory Framework and ISO Rumors as Bullish Catalysts

Why did Pi Network’s price suddenly outperform Bitcoin and Ethereum? The second key factor is regulatory developments. Since the Pi Network team released a whitepaper highlighting the necessity of supporting crypto asset market regulation (MICA), Pi Network has seen price gains. If MICA is approved, Pi Network will be one of the tokens most impacted, potentially leading to more European exchanges listing it.

MICA (Markets in Crypto-Assets) is the EU’s comprehensive regulatory framework for crypto assets, designed to provide legal certainty and consumer protection to the crypto market. Pi Network’s proactive support for MICA shows its willingness to operate within a compliant framework, a stark contrast to many projects that try to evade regulation. In the current environment of tightening oversight, projects that embrace regulation often attract more institutional investors.

More importantly, the passage of MICA will clear the way for Pi Network’s expansion in the European market, one of the world’s most important crypto regions with numerous exchanges and users. Once the MICA framework is established, compliant projects will be prioritized for listings on European exchanges. Pi Network’s early preparation gives it a first-mover advantage in this regulatory race.

Third, there are online rumors that Pi Network is applying for new ISO regulatory standards, which would align it with the financial services industry. However, BanklessTimes has been unable to verify this, and Pi’s name does not appear in the ISO database. Although unconfirmed, the market response has been positive. ISO standards are internationally recognized benchmarks for quality and safety—if Pi Network is indeed seeking such certification, it would greatly boost its credibility with traditional financial institutions.

Even if ISO certification does not materialize, the rumor itself reflects the market’s high attention to Pi Network’s compliance process. Against the backdrop of Bitcoin and Ethereum facing pressure from regulatory uncertainty, Pi Network’s proactive compliance stance has become a key reason for its relative strength.

Venturing into AI, Creating New Use Cases

Why did Pi Network’s price suddenly outperform Bitcoin and Ethereum? The fourth factor is Pi Network’s gradual establishment as an artificial intelligence (AI) token. Its developers recently invested in OpenMind, a company at the intersection of AI and robotics. As part of this investment, both parties explored how Pi Network node operators could provide services to AI industry companies and profit from it. If successful, this move would create a new use case for the token.

This pivot is highly strategic. One of the hottest narratives in crypto right now is the integration of AI and blockchain. By investing in OpenMind, Pi Network positions itself as part of the AI infrastructure, giving the token fresh value drivers. Unlike pure payment or store-of-value tokens, if Pi Network nodes can provide computational or data services to AI firms, this would generate real revenue streams and usage demand.

Furthermore, Pi Network boasts a vast user base and node network. It reportedly has tens of millions of users worldwide, whose nodes could form a distributed computing network. If this network can effectively provide computing power for AI training or inference, Pi Network could transform from a pure crypto project into a distributed AI infrastructure platform with actual revenue. This transition would significantly enhance its valuation logic.

The AI narrative also helps explain why Pi Network’s price can rise against the bear market trend. When Bitcoin and Ethereum lack new growth stories, Pi Network offers investors an exciting narrative by entering the AI field. The market is often willing to pay a premium for projects with stories and imaginative potential, especially in a globally popular sector like AI.

Ongoing Technical Upgrades and Ecosystem Development

Pi Network’s developers have also made major upgrades to the App Studio, making it easier for users to build applications. They have also rolled out new node upgrades, including a feature that more reliably and securely calculates node rewards. While these technical upgrades may seem low-key, they form the foundation of Pi Network’s long-term price performance.

The App Studio upgrade lowers the barrier for developers to build apps on Pi Network. A healthy crypto ecosystem requires a variety of application scenarios, not just speculative token trading. By enabling more developers to easily create apps, Pi Network is fostering real demand for its token. When users need Pi to access various ecosystem apps, the token’s intrinsic value naturally increases.

Node upgrades are directly related to the network’s security and decentralization. A more reliable and secure node reward calculation mechanism will incentivize more users to run nodes, thereby strengthening the network’s resilience. In the current regulatory environment, a network’s degree of decentralization is often a key factor in regulatory compliance assessments. Pi Network’s ongoing improvements in this area help it gain an edge in the compliance process.

Five Core Reasons for Pi Network’s Outperformance

Continued Whale Accumulation: 377 million Pi worth $91 million, providing strong buy-side support

MICA Regulatory Boost: Proactive support for the EU crypto asset regulatory framework, paving the way for European expansion

ISO Certification Rumors: Potential alignment with the financial services sector boosts institutional confidence

Entering the AI Sector: Investment in OpenMind opens new use cases for node computing power

Continuous Technical Upgrades: App Studio and node optimizations enhance ecosystem vitality

Technical Analysis: Double Bottom Pattern Points to $0.2920

(Source: Trading View)

Technical indicators suggest that Pi’s price may be on the verge of a strong bullish breakout, as it has formed several bullish patterns. Pi Network has formed a double bottom, one of the most common bullish reversal patterns in technical analysis. The double bottom typically appears at the end of a downtrend, signaling that selling pressure has been exhausted and buyers are stepping in.

Pi Network’s price has also broken above the upper boundary of a falling wedge, another common bullish reversal signal. Falling wedges are typically seen as bullish continuation patterns, and a breakout above the upper boundary often signals the start of a new uptrend. Combined with the double bottom, this confluence of technical signals greatly increases the reliability of a reversal.

Key oscillators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have both turned higher. The RSI’s rebound from oversold territory indicates strengthening buying power, while the rising MACD confirms improved price momentum. These technical indicators provide additional confirmation for Pi Network’s price rally.

Therefore, the most likely scenario is that Pi’s price rebounds and retests the key resistance at $0.2920—the neckline of the double bottom pattern. Once this crucial level is broken, Pi Network could begin a new bullish cycle, with targets determined by the height of the double bottom formation.