1. Nigeria’s overall economy and cryptocurrency market environment

Economic hardship and financial exclusion

Nigeria, as the largest economy in Africa (with a GDP of $477 billion in 2024), faces multiple structural challenges:

• Currency depreciation and inflation: The Naira (NGN) depreciated by 47% against the US Dollar in 2024, with an annual inflation rate as high as 29%, leading to a continuous decline in public trust in the traditional financial system.
• Financial exclusion: About 60% of adults do not have bank accounts, and the bank coverage rate in rural areas is less than 30%, leading to more than 80 million people unable to access basic financial services.
• Foreign Exchange Controls: The government implements strict foreign exchange controls to stabilize the exchange rate, making it difficult for businesses to obtain US dollars, leading to black market transactions (premium rates exceeding 50%).

Characteristics of the cryptocurrency market

Nigeria has become the country with the highest adoption rate of cryptocurrencies in Africa (ranked second globally), with a trading volume of $567 billion in 2023, accounting for 45% of sub-Saharan Africa. Market driving factors include:

• Stablecoin dominance: USDT and other stablecoins account for 43% of the trading volume, mainly used for cross-border payments and inflation hedging;
• P2P trading is active: 60% of Paxful’s African trading volume comes from Nigeria;
• Youth demographic dividend: 18-34 year olds account for 26.6% (60.3 million people), with a smartphone penetration rate of 66% (by 2025).

Data Source:Chainalysis report

2. Background and Technical Architecture of Pi Coin Project

The positioning and core innovation of Pi Coin

Pi Network is a mobile blockchain project launched by the Stanford team in 2019, focusing on lowering the barrier to entry for cryptocurrencies. Its core innovations include:

• Mobile mining mechanism: users can participate by clicking the app daily, no professional equipment needed;
• Stellar Consensus Protocol (SCP) Improvement: Combining Federated Byzantine Agreement (FBA) to achieve low-energy validation;
• Layered Role System: divided into “Vanguard” (daily mining), “Contributor” (invitation rewards), and “Node” (full-chain verification) three types of roles.

Technological implementation and mainnet progress

As of February 20, 2025, the key metrics of the Pi mainnet are as follows (data source: Pi Block Explorer):

The mainnet has connected to more than 80 DApps, with local applications in Nigeria accounting for 15%, covering areas such as payment and logistics.

Source:Pi Blockexplorer

3. Pi Coin Market Performance and Risk Analysis

Gate.io launches data and price fluctuations

On February 20, 2025, PI opened at 1.35 on Gate.io, reaching a high of 2.888 within 24 hours, and a low of $0.049, with a fluctuation of 2655.83%. The trading volume of PI is 94.6372 million, with liquidity concentrated in the perpetual contract market (leveraged up to 1-50 times).

Source:gate.io spot trading

Risk Warning

• Selling Pressure Risk: Currently, only 1.6% of the total supply is in circulation, with 98 billion PI to be released in the future;
• Regulatory Uncertainty: The Central Bank of Nigeria has issued a compliance review warning to PI payments;
• Technical bottleneck: The mainnet TPS is only 15-20, which is difficult to support high-frequency payment demands.

4. Pi Coin’s Ecological Practice in Nigeria

Grassroots mining: user growth and community-driven

Nigeria has become the third largest market for Pi Network globally (after India and Vietnam), key data:

• Registered users: over 2 million (accounting for 40% of total users in Africa);
• Active miners: 850,000 per day, with an average holding of 1,200 PI per person;
• Offline promotion: set up community centers in Lagos, Abuja, and other places to penetrate low-income groups through the “invite rebate” model.

Cross-border Payments: Fee Advantages and Scene Implementation

Pi Coin’s performance in payment applications in Nigeria:

• Cross-border remittance costs: average fee rate of traditional banks is 8.9%, while PI payment is only 0.1%;
• Merchant acceptance: Over 200 local merchants support PI payments, including food retail and logistics services;
• Fiat exchange: Over-the-counter (OTC) exchange rate 1 PI ≈ $1.2, 11% premium compared to Gate.io official rate.

5. The deep impact of Pi Coin in Nigeria

The practical path of grassroots finance empowerment

Pi Network has built a unique inclusive financial model in Nigeria through its zero-cost mining mechanism:

• User growth: Active miners exceed 2 million, accounting for 40% of the total users in Africa, with an average mining volume of 1200 PI per person per day;
• Income substitution: Lagos delivery riders save 15% on fees by paying with Pi, increasing monthly income by $45;
• Community Network: 32 offline community centers have been established nationwide, penetrating rural areas through the ‘invite rebate’ mechanism (coverage increased to 58%).

Cost revolution of cross-border payments

Pi Coin demonstrates significant advantages in the payment scenarios in Nigeria:

Source: Central Bank of Nigeria report

The ‘digital piggy bank’ against inflation

Due to the Naira depreciating by over 40%, Nigerians view Pi Coin as a new store of value:

• Off-site premium: The local OTC market 1 PI ≈ 1.2, a discount of 11% compared to the official price (1.35) of Gate.io, reflecting strong local demand;
• Yield Farming: After the launch of PI staking on Gate.io, Nigerian users have locked in 1.2 million PI, with an annualized yield of 8%-12%;
• Gold substitute: Trading volume in the illegal gold market in Kano State dropped by 23%, with some merchants turning to the PI/USDT trading pair.

6. Pi Coin Challenge and Regulatory Dynamics

Technical bottlenecks and ecological limitations

• Insufficient performance: the mainnet TPS is only 15-20, unable to support high-frequency payment demands (Nigeria’s daily electronic transactions exceed 50 million).
• Single use case: 80% of DApps are simple payment tools, lacking complex ecosystems like DeFi.

Regulatory pressure and compliance risks

• Policy tightening: The Central Bank of Nigeria requires all cryptocurrency projects to submit anti-money laundering proof by January 2025, and PI faces scrutiny due to its anonymity.
• Tax Pressure: Cryptocurrency transactions are subject to a 10% capital gains tax, reducing miners’ actual income by 18%.

Intensified market competition

• Stablecoin squeeze: cNGN (Naira-anchored stablecoin) will be launched in Q2 2025, directly impacting the PI payment scene;
• Local project rise: Fintech companies like Flutterwave launch ‘Naira+ USDT’ hybrid wallet, diverting 30% of users.

7. Pi Coin recent developments and future prospects

Ecosystem expansion after mainnet launch

The Pi Core Team announced that they will launch the ‘Africa Developer Program’ in Q2 2025, investing 5 million PI to incentivize DApp development in Nigeria, with a focus on agricultural supply chain and medical payments.

Recent News (As of 2025/02/20)

Community protests KYC delays: Over 100,000 users unable to migrate tokens due to incomplete identity verification, fearing a sell-off wave;

Nigeria’s central bank warns: Requires Pi Network to clarify tax compliance solutions, otherwise local transactions will be restricted;

Offline merchant expansion: Lagos adds 45 PI payment access points, covering high-frequency scenes such as gas stations and pharmacies.

Mainnet launch sparks market divergence: PI’s first-day trading volume breaks records, but analysts warn of ‘high turnover may indicate short-term selling pressure’;

Source:PiNewsMedia

Summary

The practice of Pi Coin in Nigeria reveals the dual role of cryptocurrency in extreme economic environments: it is both a ‘digital shield’ for the grassroots to fight inflation and an efficiency tool for cross-border trade. Its success stems from the precise matching of local needs - zero cost acquisition, low threshold use, and strong community drive. However, technical performance shortcomings, regulatory uncertainties, and stablecoin competition will long-term limit its development potential.

For Nigeria, the popularity of Pi Coin reflects the failure of the traditional financial system and the innovative path of self-help for the people. If the project can accelerate the mainnet upgrade and deepen compliance and cooperation, it may become a landmark case of the African Web3 revolution; otherwise, it may repeat the fate of the ‘flash in the pan’ MEME coin.

Notice: Due to compliance reasons, users from certain countries and regions will be unable to deposit and trade. Users are responsible for investigating local compliance requirements and assuming trading risks on their own.