Pi Network plunged by double digits over the past week, even as the broader crypto market shows signs of recovery. The altcoin’s market cap dropped to $4.1 billion, as PI continues to see intense selling pressure.
With bearish pressure intensifying, the token could soon revisit its all-time low near $0.40.
PI Risks Deeper Drop
Despite some strength across the broader market, investor sentiment toward PI remains weak, with technical indicators suggesting that its price decline could continue.
The Relative Strength Index (RSI), a key momentum indicator that tracks an asset’s overbought and oversold market conditions, continues to drop, indicating falling demand and growing selling pressure.
At press time, PI’s RSI is in a downtrend at 39.78. This RSI reading indicates weakening momentum and positions the token just above oversold territory, suggesting continued selling pressure could trigger further losses.
Furthermore, Pi Network’s on-balance volume (OBV) has also decreased, pointing to declining accumulation and reduced buyer interest. This indicator is at -1.26 billion at press time, falling by 15% in the past week.
The OBV measures buying and selling pressure by tracking volume flow relative to price movements. When OBV falls like this, more volume is tied to selling than buying. This indicates weakening investor confidence and potential for further price declines.
PI Token Risks Retesting All-Time Low
PI’s plummeting Chaikin Money Flow (CMF) supports the bearish outlook above. At press time, this indicator, which tracks how money flows into and out of an asset, is below the zero line at -0.15.
This negative reading reflects the strength of the sell-side pressure in the PI spot markets. If this trend persists, PI could revisit its all-time low of $0.40.
The recent depeg incident involving sUSD from Synthetix has highlighted that this sector remains fraught with risks despite the immense potential of algorithmic stablecoins.
The sUSD incident is not the first to expose the vulnerabilities of algorithmic stablecoins. From technical challenges and regulatory pressures to dwindling community trust, projects in this space must navigate numerous obstacles to survive and thrive.
The Landscape of the Algorithmic Stablecoin Market
Algorithmic stablecoins, which maintain their value without direct asset backing, were once hailed as a breakthrough in decentralized finance (DeFi). However, according to CoinMarketCap data from April 2025, the total stablecoin market capitalization stands at $234 billion, while algorithmic stablecoins account for about $458 million, equivalent to just 0.2%.
This stark disparity reflects the reality that algorithmic stablecoins have yet to gain widespread trust from the community. High-profile failures like the collapse of UST/LUNA in 2022, coupled with regulatory uncertainties such as the EU’s MiCA framework, have fueled skepticism.
More recently, the depeg of Synthetix’s sUSD is a typical example of this model’s inherent risks.
A Deep Dive into Synthetix’s sUSD Depeg
Synthetix is a well-known DeFi protocol celebrated for its synthetic asset system. Within this ecosystem, sUSD is an algorithmic stablecoin designed to peg its value at 1 USD, backed by the SNX token and price data from Chainlink.
However, sUSD has faced significant challenges with a prolonged depeg recently. At the time of BeInCrypto’s report, sUSD was trading at 0.77 USD, which has persisted since late March 2025. The primary cause was a major liquidity provider withdrawing from the sBTC/wBTC pool on Curve, which triggered intense selling pressure on sUSD. This forced users to convert other synthetic assets like sETH or sBTC into sUSD, exacerbating the price decline.
On April 21, 2025, Kain Warwick, the founder of Synthetix, announced on X that the team had implemented an sUSD staking mechanism to address the issue. However, he noted that the mechanism remains manual and lacks a fully functional user interface (UI), which is expected to launch in a few days.
“Update on the sUSD depeg. We have implemented an sUSD staking mechanism but it’s very manual until the UI goes live in a few days. Here was my hot take from discord though,” shared Kain Warwick, founder of Synthetix.
Warwick further stated that if the incentive mechanism (carrot) proves ineffective, Synthetix would adopt stricter measures (stick) to compel stakers in the 420 pool to participate more actively. He emphasized that, with the collective net worth of SNX stakers reaching billions of USD, Synthetix has the financial resources to stabilize sUSD and resume development of derivative products on Layer 1.
No Successfully Algorithmic Stablecoin Project
Before the sUSD depeg incident, the market witnessed the dramatic collapse of UST/LUNA in 2022. UST, Terra’s algorithmic stablecoin, suffered a severe depeg, dragging LUNA’s value down from $120 to near zero. This event caused billions of USD in losses and significantly eroded trust in the algorithmic stablecoin model.
More recently, the ‘Godfather of DeFi’, Andre Cronje, behind Sonic (formerly Fantom), also shifted direction. Sonic initially developed a USD-based algorithmic stablecoin but later pivoted to a stablecoin pegged to the UAE dirham.
“Pretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement,” Cronje stated.
Beyond technical risks, algorithmic stablecoins face mounting regulatory pressures. The EU’s MiCA regulation, effective since June 2024, imposes strict standards on stablecoin issuers to ensure consumer protection and financial stability. Under MiCA, algorithmic stablecoins are classified as ART (Asset-Referenced Token) or EMT (E-Money Token), requiring projects to meet complex compliance demands.
This intensifies the pressure on developers, especially as other jurisdictions also tighten crypto regulations.
These examples show the vulnerability of algorithmic stablecoins to liquidity shocks and market sentiment, particularly due to their lack of direct asset backing.
The Potential of Algorithmic Stablecoins
Despite the challenges, algorithmic stablecoins still hold developmental potential. A March 2025 post on X by CampbellJAustin suggested that a next-generation decentralized algorithmic stablecoin is feasible if lessons are learned from past failures.
“I actually think a next-gen decentralized algorithmic stablecoin is possible. I also think it will not be done correctly by the crypto community because the primary constraints are economic and risk management, not technological,” CampbellJAustin shared.
However, projects must focus on building more price stability mechanisms, combining algorithms with liquidity safeguards to succeed. Additionally, they should prepare for regulatory requirements, particularly in regions with stringent rules like the EU. Transparency in operations, regular audits, and clear communication with users are crucial to rebuilding community trust.
By addressing these factors, projects in this space can seize the opportunity to regain confidence and drive innovation.
Bitget, the leading cryptocurrency exchange, and Web3 company, is kicking off a dynamic new campaign with LALIGA, featuring Barcelona’s electrifying winger Raphinha. The new collaboration highlights Bitget’s innovative trading products—Copy Trading, Launchpool, and Pre-market—drawing a clever parallel between the precision of elite football and the strategy behind smart crypto trading via a series of videos that will be launched throughout the month of April.
Just as Raphinha dances past defenders with samba flair or executes tiki-taka precision on the pitch, Bitget’s tools empower traders to navigate the crypto markets with agility and foresight. The campaign’s three commercials showcase this harmony, blending LALIGA’s cutting-edge approach to sports with Bitget’s tech-driven trading solutions.
“In football, split-second decisions make the difference between a goal and a miss,” said Jorge de la Vega, LALIGA executive director. “Partnering with Bitget reflects our shared focus on innovation, performance, and strategy—whether on the field or in the markets.”
Raphinha, who recently hit 50 goal contributions for FC Barcelona this season, echoed the sentiment: “Football and trading both demand quick thinking and the right tools. Bitget’s platform helps traders stay ahead, just like we do on the pitch.”
The campaign isn’t just about star power; it’s about engagement. Bitget will roll out user education initiatives and trading challenges, allowing participants to win exclusive LALIGA prizes, including match tickets to see Raphinha in action for league leaders FC Barcelona. Think of it as a hat-trick of opportunities: learn, trade, and win.
“What excites me most about this partnership isn’t just the shared spotlight between crypto and football; it’s how fundamentally alike these worlds are. When Raphinha receives the ball, he’s processing positioning, momentum, and opportunity in real-time, much like a skilled trader reading market movements,” said Gracy Chen, CEO at Bitget. She added, “We’ve built tools that give users that same edge: Copy Trading lets you learn from the pros, Launchpool brings effortless passive income, and Pre-market offers early winning opportunities. This campaign celebrates that strategic mindset whether you’re trading on our platform or watching Raphina light up the Camp Nou.”
LALIGA’s reputation for embracing technology aligns perfectly with Bitget’s mission to make crypto trading accessible and intuitive. Both industries thrive on strategy, timing, and execution—whether it’s a perfectly placed through ball or a well-timed trade. This campaign marks the latest chapter in Bitget’s growing sports legacy, having partnered with football legend Lionel Messi and the Italian football club Juventus. As the campaign unfolds, Bitget and LALIGA aim to inspire fans and traders alike to embrace a smarter, more strategic approach, both in crypto and beyond.
Visit Bitget’s YouTube channel for part one of the Raphinha series.
About Bitget
Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 100 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions while offering real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, token swap, NFT Marketplace, DApp browser, and more.
Bitget is at the forefront of driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World’s Top Football League, LALIGA, in EASTERN, SEA and LATAM markets, as well as a global partner of Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team), to inspire the global community to embrace the future of cryptocurrency.
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