This Week In Crypto: Pi Network Mainnet Migration, XRP Commodity Rumors, Binance Traffic, and More

This week, the crypto market recorded several significant developments, ranging from key controversies within the Pi Network ecosystem to Trump’s crypto summit and revelations of Bitcoin’s role in the dark web.

The following is a roundup of crucial developments that happened this week but will continue shaping the sector.

Pi Network Criticized Over Mainnet Migration

The controversial Pi Network was criticized by its community of Pioneers, making it a headline topic this week in crypto. It came amid widespread issues where Pioneers could not transfer their Pi coins to the mainnet before the migration deadline.

“The whole process is a joke. ~80% of my balance shows as unverified, although all of my security circle has completed KYC. No additional actions are listed to be taken to clear this up. Furthermore, nobody got back to me on a support ticket I opened weeks ago. What gives?” remarked a user.

Many users, frustrated by prolonged lockup periods, have turned to selling their accounts, raising concerns about the ecosystem’s integrity. The failure to meet migration deadlines has heightened fears of a potential price drop once unrestricted trading begins.

Adding to the concerns, KYC (Know Your Customer) verification issues plague the Pi Network community. Pioneers who cannot verify their identities risk losing access to their Pi coins, creating uncertainty ahead of Pi Day.

These situations led to increasing dissatisfaction among users who questioned the project’s transparency. Meanwhile, centralization concerns have escalated, as reports indicate that Pi Network’s Core Team holds 82.8 billion Pi coins. This revelation has sparked debates about whether the network is truly decentralized or controlled by a select few.

Dark Web Drug Market Moves Millions in Bitcoin

Another headline topic this week in crypto entailed the resurfacing of an ancient and long-dormant Bitcoin wallet. The crypto wallet, associated with the Silk Road-era dark web drug trade, suddenly resurfaced, moving $77.5 million worth of Bitcoin (BTC) after nine years.

“Nucleus Marketplace was a darknet drug market, and it was believed that the founder had either been apprehended by law enforcement or had exit-scammed when the market went offline in 2016. The BTC held in their wallets has not been moved until today,” Arkham revealed.

The transfer raised questions about the potential for further illicit financial activity. It also begged queries on whether authorities are monitoring these funds.

The transaction serves as a reminder of cryptocurrency’s controversial past and ongoing use in underground markets.

SEC May Reclassify XRP as a Commodity

Rumors surfaced this week that the US SEC (Securities and Exchange Commission) may reclassify XRP as a commodity rather than a security. This development follows recent legal victories for Ripple, which successfully argued that XRP sales on secondary markets do not constitute securities transactions.

“This speculation gained traction after Vermont state regulators announced they were dropping their case against Coinbase, citing the newly established SEC Crypto Task Force. This could set a major precedent for Ripple,” a user on X shared.

If true, this move could significantly affect Ripple’s longstanding legal battle with the SEC and redefine how cryptocurrencies are regulated. Specifically, if the SEC categorizes XRP as a commodity, this would place it under the jurisdiction of the CFTC (Commodity Futures Trading Commission) rather than the SEC, potentially leading to a more favorable regulatory environment for Ripple and its investors.

Such a milestone could pave the way for an XRP ETF in the US. However, no official confirmation has been provided, and the crypto community remains divided on the implications.

Some believe it would provide much-needed clarity and regulatory relief. Others caution that a reclassification could result in additional oversight and compliance requirements.

Meanwhile, many draw similarities between Ethereum (ETH) and XRP. In their opinion, this merits XRP for a commodity status or classification.

Trump’s Crypto Summit Sparks Frustration

Also this week in crypto, US President Donald Trump hosted a much-anticipated crypto summit at the White House. The event aimed to further position Trump’s administration as an ally to the digital asset industry.

However, the event fell short of expectations, lacking clear policy proposals and tangible commitments. Instead of offering concrete regulatory guidance, the summit largely consisted of broad statements about innovation in the US, economic growth, and opposition to excessive government control over crypto.

“That Summit was the most embarrassing thing I’ve ever witnessed,” popular NFT trader Clemente lamented.

Additionally, the summit failed to address key issues such as stablecoin regulations, central bank digital currencies (CBDCs), and the future of Bitcoin and Ethereum in the US. Critics argue that if Trump truly wants to appeal to crypto investors, he must outline a comprehensive policy framework rather than relying on vague assurances.

Binance and Coinbase Traffic Drops Nearly 30%

Meanwhile, amid a broader market lull, Binance and Coinbase, two of the largest centralized exchanges (CEXs), saw a nearly 30% drop in traffic. Spot and derivatives trading volumes have also declined, reflecting skittishness from retail investors.

The downturn was caused by reduced trading activity, growing investor uncertainty, and declining retail interest in crypto. The decline in traffic suggests that fewer users are engaging with crypto trading platforms as market sentiment remains bearish.

Many analysts believe this trend is driven by lower volatility, reduced speculative activity, and regulatory concerns. President Trump’s tariffs, particularly in the US and Europe, fuel these concerns.

Additionally, the lack of major bullish catalysts, such as Bitcoin ETF (exchange-traded funds) inflows or institutional adoption, has kept many traders on the sidelines. BeInCrypto reported that US Bitcoin ETF holdings have since fallen below Satoshi’s BTC stash as outflows continue.

Another factor contributing to the reduced traffic is the growing competition from decentralized exchanges (DEXs) and alternative trading platforms that offer lower fees and fewer regulatory constraints.