Institutional Apathy and Pi Network's Transition to a Mainnet: Assessing Adoption Risks in Emerging Crypto Projects

In the rapidly evolving world of cryptocurrency, institutional adoption remains a litmus test for legitimacy. For projects like Pi Network, which has spent years transitioning from a mobile-mining experiment to a blockchain with real-world utility, the question isn't just whether the technology works-it's whether institutions will embrace it. As Pi Network prepares for its Protocol v23 mainnet upgrade in late 2025 or early 2026, the project faces a critical juncture: balancing technical innovation with the skepticism of institutional investors who demand proven scalability, liquidity, and governance frameworks.

Pi Network's Mainnet Transition: A Technical Leap

Pi Network's transition to an open mainnet, launched in February 2025, marks a significant milestone. By integrating Stellar Core v23.0.1 and a Rust SDK modeled after Stellar's Soroban framework, the network has improved transaction throughput to over 1,000 transactions per block and enabled developers to build decentralized applications (dApps), according to a BlockNews report. These upgrades position Pi as a contender in decentralized finance (DeFi), with a decentralized exchange (DEX) and automated market maker (AMM) already in testing, as noted in a CoinCentral analysis.

However, technical progress alone isn't enough to attract institutions. The network's user base-over 13 million migrated to the open mainnet as of June 2025-demonstrates grassroots adoption, but liquidity remains a hurdle. Pi Coin's price, currently trading near $0.2368 with a market cap of $1.92 billion (down from $18 billion in early 2025), reflects ongoing volatility and low trading volumes, according to a CoinPedia report. Analysts argue that tokenomics adjustments, such as buybacks or burns, could stabilize the price, but the upcoming release of 110 million Pi tokens in 2025 threatens to exacerbate selling pressure, a trend highlighted in a HokaNews report.

Institutional Interest: A Mixed Signal

Despite these challenges, Pi Network has seen pockets of institutional interest. The launch of the Valour Pi Exchange-Traded Product (ETP) on Sweden's Spotlight Stock Market in Q3 2025 attracted $947 million in assets under management (AUM), signaling cautious confidence in the project, as detailed in a JituMaster report. This ETP, a regulated vehicle for institutional access, underscores Pi's alignment with global regulatory standards. Additionally, the adoption of Linux Nodes in August 2025 expanded Pi's infrastructure, enabling enterprise-level integration and decentralized services, according to a JituMaster post.

Yet, institutional apathy persists. While the ETP's success is notable, broader market participation remains limited. Major exchanges like Binance and Coinbase have yet to list Pi Coin as of August 2025, and liquidity constraints hinder large-scale institutional trading, as noted in an OKX guide. The project's reliance on a grassroots community-rather than traditional venture capital or corporate partnerships-also raises questions about its ability to scale beyond its current user base.

Adoption Risks: Liquidity, Governance, and Trust

The risks for emerging crypto projects like Pi Network are multifaceted. First, liquidity challenges threaten to undermine price stability. With a market cap of $1.92 billion, Pi Coin lacks the depth to absorb large institutional trades without significant price swings. Second, governance transparency remains a concern. While the Pi Core Team emphasizes a "cautious, detail-oriented approach" to upgrades, as noted in a CoinSpeaker report, the project's decentralized governance model is still in its infancy. Institutions demand clear, auditable frameworks for decision-making-a gap Pi must address to build trust.

Third, tokenomics volatility poses a long-term risk. The 110 million token unlock in 2025, combined with a lack of robust deflationary mechanisms, could erode investor confidence. While the network is exploring token burns, these measures are not yet institutional-grade.

The Path Forward: Balancing Innovation and Institutional Readiness

For Pi Network to succeed, it must bridge the gap between technical innovation and institutional expectations. The Protocol v23 upgrade, with its focus on scalability and DeFi tools, is a step in the right direction. However, the project needs to:
1. Secure listings on major exchanges to improve liquidity.
2. Implement transparent governance protocols to align with institutional standards.
3. Address tokenomics imbalances through structured buybacks or burns.

The launch of PiNet in September 2025-enabling Web2 users to access Pi via browsers like Chrome and Safari-also represents a strategic move to broaden adoption, as HokaNews previously reported. By bridging Web2 and Web3, Pi could attract a hybrid user base that includes both retail and institutional participants.

Conclusion

Pi Network's journey from a mobile-mining experiment to a blockchain with institutional-grade infrastructure is a testament to its ambition. Yet, the project's success hinges on its ability to convert technical progress into institutional trust. While the Valour ETP and Protocol v23 upgrades are promising, Pi must address liquidity constraints, governance clarity, and tokenomics stability to attract sustained institutional investment. For investors, the key takeaway is clear: emerging crypto projects require not just innovation, but a roadmap for institutional adoption.