Pi Network takes major step toward DeFi goals – but can it succeed?

The Pi Network team has announced major updates to its ecosystem, including a new feature that lets users use their PI tokens as collateral to borrow stablecoins or lend them for rewards.

This new system, launched through PiBridge, marks a big shift from simple mobile mining to more active financial use of the PI token. However, the update comes at a difficult time, as the token’s value remains low and the project faces criticism over insider activity.

New features for the ecosystem

The update brings several tools to improve the Pi Network experience:

• AI-Powered App Studio: The app creation tool now includes AI features to help users design apps more easily, even without coding experience.

• KYC and Mainnet Progress: Over 3.36 million users have completed verification (KYC), and 2.69 million have migrated to the Mainnet.

• ISO 20022 Integration: Pi is aligning with the global banking standard ISO 20022 by November 2025, aiming to connect more closely with financial systems.

• PiFest for Utility: Earlier in 2025, Pi hosted “PiFest” to promote using PI for real-world payments, though it had little effect on the token’s price.

Ongoing challenges

Despite these developments, Pi Network continues to face serious issues:

• Falling Token Price: PI is currently trading near $0.20, down over 90% from early 2025 highs.

• Insider Selling Allegations: Reports claim that wallets linked to the core team moved large amounts of PI before a sharp price drop, leading to community backlash.

• Centralization Concerns: Critics say the network is still controlled by the core team, limiting decentralization and transparency.

• Security Risks: Phishing scams, app flaws, and KYC-related privacy issues have also raised alarm.

Looking ahead

The new lending and borrowing tools could mark a turning point for Pi Network if users adopt them. But for now, low usage, weak liquidity, and trust issues remain major hurdles.

Investors are watching key milestones such as the success of PiBridge, more exchange listings, and growth in app development to see whether Pi Network can rebuild credibility and show real-world value.

For now, while the new updates show progress, the project’s future still depends on transparency, adoption, and trust from its community.

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