Stellar News Today: Pi's v23 Overhaul: Will Stellar Tech Fix Liquidity Woes?

Pi Network's planned Q4 2025 upgrade to its v23 protocol has become a focal point for both technical and market observers, with analysts emphasizing its potential to address long-standing challenges in scalability, compliance, and liquidity. The upgrade, aligned with Stellar Core v23.0.1, introduces embedded KYC authority at the protocol level, enhanced security through biometric authentication, and support for smart contracts via Soroban. These changes aim to strengthen Pi's open mainnet infrastructure, which currently supports over 60 million users and 14.82 million KYC-verified accounts. The v23 rollout, expected to transition from Testnet 1 to Testnet 2 before mainnet deployment, includes decentralized finance (DeFi) tools such as a decentralized exchange (DEX) and automated market maker (AMM), enabling users to experiment with token swaps and liquidity pools on Testnet.

The protocol's alignment with Stellar's broader ecosystem underscores its technical evolution. Stellar's Protocol 23, set for a mainnet vote on September 3, 2025, introduces features like parallel transaction execution, state-in-memory optimization, and reusable Wasm module caching, all of which are expected to enhance Pi's transaction speed and reduce operational costs. Analyst Dr. Altcoin, a prominent voice in the Pi community, noted that these upstream improvements could position Pi to scale efficiently while maintaining mobile-first accessibility. However, he cautioned that technical upgrades alone may not resolve Pi Coin's liquidity issues, which have seen the token trade below $0.25 with daily volumes slipping under $30 million.

Security and compliance enhancements are central to the v23 upgrade. Biometric login options, such as fingerprint and face ID, and improved two-factor authentication for wallets aim to mitigate fraud risks, particularly as the network transitions to a fully open ecosystem. The embedded KYC authority also delegates verification responsibilities to trusted community entities, aligning with regulatory standards like ERC-3643 for on-chain compliance. This shift is critical for Pi's broader utility ambitions, including partnerships with fiat on-ramp providers like Onramper and Banxa, which were integrated in August 2025.

Scalability improvements, including faster transaction speeds and lower gas fees, are expected to support Pi's 21,000+ applications, ranging from decentralized finance to real-world asset tokenization. The Linux Node release in August 2025 further standardizes infrastructure for developers and partners, enabling auto-updates and self-managed operations. While the node software does not directly affect mining rewards, it broadens accessibility for third-party integrations, aiding decentralization efforts.

Market observers remain divided on Pi Coin's price trajectory. After shedding nearly 90% of its value from a 2025 peak of $3, the token has struggled with weak on-chain demand and token emissions. Dr. Altcoin and other analysts argue that the v23 upgrade, combined with supply-side measures like token buybacks or coin burns, could stabilize the asset. Recent data shows 2.5 million Pi tokens moved to self-custody wallets, and the Relative Strength Index (RSI) has dipped to 24, suggesting potential for a short-term rebound. However, the next token unlock-projected to release 120 million Pi-remains a key risk factor.

The upgrade's success hinges on Pi's ability to transition from speculative hype to utility-driven adoption. Founders have emphasized long-term goals, including AI-powered app development via the Pi App Studio and real-world asset (RWA) integration. While these initiatives align with broader crypto trends, analysts stress that tangible use cases-such as decentralized exchanges and liquidity pools on Testnet-must materialize to justify investor confidence.

Sources:

[1] Pi Network's New Upgrades: What We Know - bsc.news (https://bsc.news/post/pi-network-upgrades)

[2] Pi Network Mainnet Update: Pi Coin Price Prediction After ... (https://cryptorank.io/news/feed/063d8-pi-network-mainnet-update-pi-coin-price-prediction-after-protocol-23-upgrade-explained)

[3] Pi Network Preps for Protocol 23: v23.0.1 Ships Ahead of Sept. 3 ... (https://cryptomode.com/news/pi-network-preps-for-protocol-23/)

[4] Stellar Protocol 23 Upgrade Set to Boost Pi Network's Web3 (https://chainaffairs.com/stellar-protocol-23-upgrade-set-to-boost-pi-networks-web3-capabilities-and-token-value/)

[7] Pi DEX, AMM Liquidity Pools and Token Creation Features ... - Pi ... (https://minepi.com/blog/dex-amm-token-creation/)

[9] Pi Coin Outlook 2025: Recovering From the Bottom, ... (https://coindoo.com/pi-coin-outlook-2025-recovering-from-the-bottom-major-buybacks-and-price-predictions/)