Cryptocurrency is arguably one of the most volatile investment mediums that not only formulate an opportunity but comes with a risk for investors. Shocking Token delves further into the recent price action of Kaito, Avalanche (AVAX), and Pi Network. It offers glimpses into their special situations and possible paths ahead within this chaos. Emily Tran deep dives into what’s making each project tick, giving critics and supporters alike an unbiased look at their relative risks and rewards.

Avalanche (AVAX): Riding the Stablecoin Wave

Avalanche has demonstrated resilience and growth, particularly evident in its increasing stablecoin supply. Recently, the network has experienced a massive influx of liquidity. As of their last March 31, 2025, report date, stablecoins in circulation have increased more than 70%, surpassing $2.5 billion. This major new investment really drives home the confidence growing in the Avalanche ecosystem and its applicability to the world outside of crypto.

As of this writing, the Avalanche network is the third highest in net stablecoin inflows, with more than $120 million flowing into the ecosystem. A large share of these inflows is due to bringing Tether (USDT) onto the chain via bridging. This strategic step not only increases the stability of the ecosystem but its utility. Wyoming's adoption of real-time payments using AVAX-based stablecoins further underscores the chain's growing prominence in government and business transactions, showcasing its practicality and potential for widespread adoption.

Despite the short-term pullbacks AVAX price actions have been seen, AVAX’s completeness movement is still strong. As long as it can hold support above the $22 level, it could very likely keep on its bullish path. The growing stablecoin supply, coupled with increasing real-world use cases, positions Avalanche as a potentially favorable investment during market volatility.

Pi Network: Mobile Mining and Community Power

What makes Pi Network unique is its accessibility and inclusivity. It enables its users to mine and transact in cryptocurrency using far less costly hardware and energy. Through its innovative, mobile-first approach, the platform allows users to mine Pi coins directly from their smartphones. Together, this makes for a seamless user experience and has helped cultivate a large and enthusiastic community.

Pi Network claims to have more than 45 million users. This robust community of daily active users fosters social trust and contributed to the equitable distribution of Pi coins. Its energy-efficient design allows users to mine cryptocurrency without harming the planet, supporting broader sustainability efforts. Second, Pi Network uses the Stellar Consensus Protocol (SCP) to make sure transactions are secure and efficient.

While Pi Network's approach to cryptocurrency mining is innovative, potential investors should consider the project's long-term viability and the utility of Pi coins once the network fully launches. The Pi coin value, like any other cryptocurrency, will be determined by its demand and how widely it is adopted for real-world transactions.

Kaito: Navigating Short Squeezes and Liquidity Risks

As Kaito introduces a far more complicated picture – one that’s marked by extreme price volatility and the risks of market manipulation. If Kaito can’t hold the $1.50 peg, the value will sink to $1 or less. This has the potential to cost investors millions. Kaito’s elevated short interest has primed it for a potential short squeeze. This would ignite a meteoric price explosion and cause tens of thousands of short sellers to panic liquidate their shorts.

With funding rates high, averaging above 100% over the past month, the potential for a short squeeze in Kaito is significant. This trend is true across other tokens such as IP and BERA too. This lack of oversight creates a perfect storm for market manipulation. If the price of Kaito gets below $1.50 it may set off a death spiral. Such a drop would take it under its launch price of $1.40 established on February 20.

Given these risks, investors should be cautious and do the extensive best possible due diligence to avoid investing in Kaito. Given the potential for drastic price fluctuations and market manipulation, it is a speculative investment.

Navigating the Crypto Landscape: Strategies for Volatility

Here are some strategies to consider:

  • Diversification: Spreading investments across different assets can help mitigate risk. Consider allocating a portion of your portfolio to Kaito, AVAX, and Pi Network, but also explore other cryptocurrencies and asset classes.
  • Volatility Management: The cryptocurrency market is inherently volatile. Investors should be prepared for significant price fluctuations and consider strategies like dollar-cost averaging or setting stop-loss orders to limit potential losses.
  • Research and Due Diligence: Thoroughly research Kaito, AVAX, and Pi Network, including their technologies, use cases, and potential applications. Understanding the fundamentals of each project is crucial for making informed investment decisions.
  • Risk Assessment: Evaluate your personal risk tolerance and investment goals. Consider factors like market capitalization, liquidity, and overall market sentiment before investing in any cryptocurrency.

Don’t jump in to any investment, embark on your own deep research. Evaluate your risk tolerance and stay informed about market trends. The recent quarters’ immense investment losses should serve as a powerful reminder to the need for prudence and due diligence in the evolving crypto space.