The Mainnet Launch of Pi Network Creates a Comparison with the Initial Price Models of Ethereum

Pi Network, a cryptocurrency project developed over six years, activated its mainnet on February 20, 2024. The launch has drawn attention due to the mobile-accessible mining model and initial price volatility. After launching near $3, PI has adjusted to a range around $1, reflecting the patterns seen in the early trading phase of Ethereum. The technical chart shows that PI is consolidating in a descending wedge pattern, a structure that often precedes bullish reversals. Ethereum exhibited similar behavior after its launch in 2015, trading near $1 before breaking out of a wedge pattern and soaring over 1,400% in several months. Analysts note that PI's current position closely aligns with the setup prior to Ethereum's breakout, including its proximity to the 15-day moving average (MA 15 days).

The rise of Ethereum is driven by the adoption of smart contracts and developer activity. Pi Network, while boasting a large user base, has yet to establish equivalent utility. Its roadmap emphasizes expanding use cases, but tangible applications are still in development. Experts warn that mere chart similarities do not guarantee identical outcomes, as the underlying factors differ.

The price trajectory of PI may depend on external factors, including broader cryptocurrency market trends, exchange listings, and the rollout of network features. Technical analysts emphasize the $1 level as a testing zone, with a move to maintain above the 15-day MA potentially signaling momentum. The precedent of Ethereum shows that such breakthroughs can precede rapid gains, although the scalability of this remains uncertain. The project's mobile mining method, which allows users to earn tokens through a smartphone application, has drawn attention from millions of people worldwide. However, there are still many questions about how PI will transition from the token earning platform to a functional blockchain. The developers have not revealed a timeline for major upgrades, leaving the timeline for implementation unclear. ETHNews also notes the difference in initial liquidity. The initial trading of Ethereum involved limited exchanges, while PI is listed on multiple platforms after launch. This broader accessibility may reduce volatility compared to the stronger historical fluctuations of Ethereum. While the PI community speculates about breakthroughs, this network faces common challenges for new blockchains, including providing security and scalability. The success of Ethereum stems from addressing unique issues; PI must identify its proper position to maintain long-term demand.

Currently, the price action of PI presents a cautiously optimistic story. Traders are waiting for signals on whether the technical patterns can overcome the fundamental gaps. The coming months will determine whether PI follows the historical path of Ethereum or carves out a separate path.