Why did the price of KAIA fall?

Kaia (KAIA) dropped 0.78% over the last 24 hours to $0.15, underperforming the overall crypto market, which fell 0.14%. This decline is due to technical resistance, mixed news about its ecosystem, and some investors taking profits after recent gains.

1. Technical Resistance – Price is struggling to rise above important moving averages
2. Ecosystem Growth – New stablecoin partnerships may not be enough to stop short-term selling
3. Market Mood – The Crypto Fear & Greed Index at 39 shows cautious investor sentiment

Deep Dive

1. Technical Resistance (Bearish Impact)

Overview:
KAIA’s price is facing resistance near its 7-day simple moving average (SMA) at $0.156 and 30-day SMA at $0.153. The MACD indicator shows negative momentum, while the RSI at 45.61 suggests the price is neither overbought nor oversold.

What this means:
Traders likely sold around the $0.152 level, which is a common point for taking profits. Since the price is below key exponential moving averages (EMAs) — 7-day at $0.155 and 30-day at $0.154 — short-term sentiment remains cautious.

What to watch:
If KAIA can break above $0.153 and hold, it may signal a positive turnaround. But if it falls below $0.148, the recent low, losses could continue.

2. Stablecoin Expansion vs. Profit-Taking (Mixed Impact)

Overview:
Kaia’s recent partnerships with Flipster and LINE NEXT have increased the use of USDT stablecoins in Asia. However, the 24-hour trading volume rose 5.76% to $38.1 million even as the price dropped, indicating selling pressure.

What this means:
Events like the Kaia Wave Hackathon, which offers $170,000 in prizes, are positive for long-term growth but haven’t stopped some investors from cashing out after KAIA’s 10.49% gain so far this year. The 24-hour turnover ratio of 4.15% shows moderate liquidity, which can lead to price swings.

3. Macro Crypto Sentiment (Neutral Impact)

Overview:
The overall crypto market fell 0.14%, with Bitcoin’s dominance steady at 57.7%. The Fear & Greed Index at 39 indicates investors are cautious, which may limit gains for altcoins like KAIA.

What this means:
KAIA’s 0.78% drop compared to Ethereum’s 0.23% loss versus Bitcoin suggests traders are favoring more established coins during uncertain times. Still, KAIA’s 4.51% gain over the past 30 days beats the broader crypto market’s 2.59% loss.

Conclusion

KAIA’s recent price drop seems driven more by technical factors and general market caution than by any fundamental problems. While stablecoin partnerships and the hackathon support its growth in Asia’s Web3 space, investors should watch if the $0.148 support level holds, especially given the relatively low liquidity.

Key watch: Can KAIA climb back above its 30-day SMA at $0.153? Keep an eye on the Altcoin Season Index, currently at 71, which suggests there could be rotation into altcoins soon.

What could affect the price of KAIA?

Kaia’s price is currently caught between growing use of stablecoins and uncertainty around new regulations.

1. Stablecoin Adoption – Using KRW/USDT stablecoins through Kakao and LINE could increase Kaia’s usage (positive)
2. Protocol Updates – New features letting users pay fees without KAIA tokens may lower demand (negative)
3. Regulatory Decisions – South Korea’s upcoming stablecoin laws could have a big impact (high stakes)

In-Depth Look

1. Growth in Stablecoin Use (Positive for Kaia)

What’s happening: In August 2025, Kaia partnered to allow direct KRW stablecoin withdrawals at ATMs (DaWinKS) and integrated USDT stablecoins into LINE Messenger, which has 194 million users. There’s also a Stablecoin Summer Hackathon with $170,000 in prizes aiming to launch real-world payment apps by the end of the year.

Why it matters: More stablecoin transactions mean more gas fees are paid and burned (destroyed), which reduces the total KAIA tokens available. Past events, like Kaia’s Bitkub listing in June 2025, saw prices jump about 20% during similar integrations.

2. Protocol Changes (Mixed Effects)

What’s new: The v2.0.3 upgrade lets users pay transaction fees using BORA or USDT instead of KAIA tokens through a feature called Gas Abstraction. This makes the user experience smoother but lowers the demand for KAIA tokens. On the upside, the new Consensus Liquidity Protocol allows users who stake KAIA to also provide liquidity on decentralized exchanges, earning two types of rewards.

What this means: While fewer people paying fees with KAIA might cause some selling pressure, more staking (currently 30% of all KAIA tokens are locked) could balance that out. The 200-day exponential moving average (EMA) price of $0.136 is an important support level to watch.

3. Regulatory Changes in Asia (High Risk and Opportunity)

What’s at stake: South Korea’s Digital Asset Basic Act, expected to be voted on in Q4 2025, will decide if private KRW stablecoins are legally recognized. Kaia has filed trademarks for “KRWKaia,” aiming to be a first mover. However, if the law doesn’t pass favorably, Kaia risks losing over $2 million invested in infrastructure.

Why it’s important: If the law passes, it could be similar to Japan’s 2024 stablecoin framework, which helped LINE’s stablecoin increase blockchain activity by 40%. If regulations are too strict, Kaia may have to shift focus to markets outside South Korea.

Conclusion

Kaia’s success depends on turning its large messaging app user base (250 million users) into active blockchain users through stablecoins. However, upcoming regulatory decisions will be crucial.

Keep an eye on: The results of November’s Korea Stablecoin Hackathon and the Q4 parliamentary vote. Also watch if Kaia’s token burn from transactions can make up for lower demand caused by the new fee payment options.

What are people saying about KAIA?

The Kaia community is excited about both its technical progress and practical uses. Here’s what’s trending right now:

1. DeFi partnerships – LighthouseOne now supports over $2 billion in assets, and Visa tap-to-pay is live through Oobit
2. Price movement – Traders are watching $0.18 as a key level, with large investors accumulating
3. Ecosystem growth – Stablecoins are gaining ground in Asia thanks to LINE and KakaoTalk’s combined 250 million users
4. Warning signs – Total value locked (TVL) is down 7% monthly, even though derivatives data looks positive

Deep Dive

1. @KaiaChain: Visa tap-to-pay with USDT/KAIA — bullish

"Partnered with Oobit to enable Visa-powered payments in South Korea, Thailand, and the Philippines — no need to convert to cash."
– @KaiaChain (289K followers · 1.2M impressions · Sept 1, 2025)
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What this means: This partnership allows people to pay merchants directly with crypto, which could increase demand for KAIA, especially in countries where LINE and KakaoTalk are popular messaging apps with over 250 million users.

2. @genius_sirenBSC: Technical breakout + whale moves — bullish

"KAIA broke above $0.18 after a 4,000 TPS mainnet upgrade — on-chain data shows whales bought 14% of the supply since March."
– @genius_sirenBSC (82K followers · 430K impressions · June 20, 2025)
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What this means: The reduced number of tokens available combined with technical improvements creates a positive outlook. However, the Relative Strength Index (RSI) at 79 suggests the price might be overbought and due for a correction.

3. @pukerrainbrow: LighthouseOne DeFi integration — neutral

"Top teams now manage over $2 billion in KAIA assets through LighthouseOne — but could this centralize control?"
– @pukerrainbrow (31K followers · 189K impressions · Sept 16, 2025)
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What this means: While big players adopting KAIA is a good sign, some community members worry that this might reduce the decentralized nature of the project if a few groups hold too much influence.

Conclusion

Overall, the outlook for KAIA is cautiously optimistic. Asian payment integrations and fewer tokens in circulation support growth, but concerns remain about centralized partnerships and low DeFi liquidity. Keep an eye on the KAIA/USDT trading volume on Upbit Singapore — if daily volume stays above $50 million, it could confirm a strong upward trend. On the other hand, if prices fall below $0.14, it might trigger selling pressure.

What is the latest news about KAIA?

Kaia is making moves in Asia’s stablecoin market with new partnerships and technology updates. Here’s what’s new:

1. KRW Stablecoin Plans (Aug 12, 2025) – Kakao has filed trademarks for Korean won-backed stablecoins on Kaia, waiting on new regulations.
2. Visa Tap-to-Pay Launch (Sept 1, 2025) – Oobit adds Kaia USDT/KAI for contactless payments in South Korea, Thailand, and the Philippines.
3. BORA Gaming Upgrade (Aug 7, 2025) – Kaia’s CL Protocol improves liquidity and token features for Metabora’s gaming platform.

In-Depth Look

1. KRW Stablecoin Plans (August 12, 2025)

What’s happening:
Kakao, a major tech company with over 49 million users on KakaoTalk, has filed trademarks for stablecoins pegged to the Korean won, called “KRWKaia” and “KaKRW.” These stablecoins would be used within KakaoTalk and LINE Mini apps. However, South Korea is still working out the rules around digital currencies, including licensing and capital controls.

Why it matters:
This shows Kaia’s shift toward creating local, national stablecoins instead of relying on US dollar-backed coins like USDT. While this could help with local adoption, limits on using these coins across borders might slow growth compared to global stablecoins. (Decrypt)

2. Visa Tap-to-Pay Launch (September 1, 2025)

What’s happening:
Kaia teamed up with Oobit to let users pay with Kaia’s USDT and KAI tokens using Visa’s tap-to-pay technology. This service is now live in South Korea, Thailand, and the Philippines and works through Klip and Kaia Wallet apps, reaching over 50 million potential users.

Why it matters:
Bringing crypto payments into everyday use strengthens Kaia’s value. Still, it faces competition from government-backed digital currencies (CBDCs) and popular local payment apps like KakaoPay, which could affect its market share. (Kaia Weekly Roundup)

3. BORA Gaming Upgrade (August 7, 2025)

What’s happening:
Metabora Games has integrated Kaia’s Consensus Liquidity Protocol into its BORA gaming ecosystem. This lets players stake tokens and provide decentralized finance (DeFi) liquidity at the same time. They’ve launched a $2 million liquidity pool with a token burn feature to reduce BORA’s supply.

Why it matters:
This approach makes better use of capital in Kaia’s gaming sector, but its success depends on keeping gamers engaged in a market known for ups and downs. (CoinMarketCap)

Conclusion

Kaia is focusing on building stablecoin infrastructure and real-world payment options while expanding in gaming. With regulations still evolving in South Korea and Southeast Asia, the big question is: Can Kaia’s focus on local stablecoins keep pace with the growing interest in government-backed digital currencies (CBDCs)?

What is expected in the development of KAIA?

Kaia’s roadmap centers on integrating stablecoins, growing its ecosystem, and boosting user adoption.

1. FNSA Swap Ends (September 30, 2025) – Final deadline to exchange old tokens.
2. Epoch 2 Rewards Release (October 28, 2025) – 40% of community rewards become available.
3. KRW Stablecoin Launch (2025–2026) – Plans to introduce a Korean Won-backed stablecoin.

In-Depth Look

1. FNSA Swap Ends (September 30, 2025)

What’s Happening?
Kaia will stop supporting the swap from FNSA tokens to KAIA tokens and will no longer support the Finschia blockchain after September 30, 2025. Users need to exchange any remaining FNSA tokens before this date. Afterward, any unclaimed tokens will be lost (KaiaChain).

Why It Matters
This move simplifies Kaia’s token system, focusing everything on KAIA. While it may cause some inconvenience for users who miss the deadline, it helps create a cleaner, more unified ecosystem.

2. Epoch 2 Rewards Release (October 28, 2025)

What’s Happening?
Starting October 28, users can claim the last 40% of Epoch 2 rewards, which include 5 million KAIA tokens plus $1.1 million in ecosystem tokens. Earlier portions were distributed in August and September to encourage ongoing community involvement (KaiaChain).

Why It Matters
This is positive for KAIA because it may increase trading activity and liquidity. However, there’s a chance some users might sell their tokens quickly after receiving rewards, which could affect the market.

3. KRW Stablecoin Launch (2025–2026)

What’s Happening?
Kaia is working with KakaoPay and regulators to create a stablecoin pegged to the Korean Won, pending approval of South Korea’s Digital Asset Basic Act. The trademark “KRWKaia” suggests integration with Kakao’s large user base of 49 million people (Decrypt).

Why It Matters
This is a strong opportunity for KAIA to become a key player in real-world payments across Asia. Success depends on regulatory approval and Kakao’s ability to roll it out, but it could lead to widespread adoption through popular apps like KakaoTalk and LINE.

Conclusion

Kaia’s roadmap combines technical improvements (ending FNSA swaps), community rewards (Epoch 2), and strategic moves into stablecoins (KRW integration). Its focus on compliant and user-friendly Web3 tools supports its goal to lead in Asian markets.

Can Kaia’s ability to navigate regulations help it win the race for stablecoin leadership?

What updates are there in the KAIA code base?

Kaia’s software recently received major updates to improve performance, lower fees, and work better with Ethereum.

1. v2.0.3 Mainnet Upgrade (July 19, 2025) – Users can now pay transaction fees using stablecoins or Ethereum-compatible tokens.
2. Gas Abstraction Metrics (July 13, 2025) – Users can pay fees in stablecoins without needing KAIA tokens.
3. Consensus Liquidity Integration (August 5, 2025) – Combined staking and liquidity into one deposit for easier rewards.

Deep Dive

1. v2.0.3 Mainnet Upgrade (July 19, 2025)

Overview: This update introduced Gas Abstraction, letting users pay transaction fees with stablecoins like USDT or BORA instead of KAIA tokens. It also made Kaia fully compatible with Ethereum’s latest Prague upgrade.

Key technical improvements:

• Support for EIP-7702, which helps smart contract wallets and allows for a better user experience.
• Integration of EIP-2537 to lower costs for privacy-focused zero-knowledge proofs.
• Important fixes to improve transaction processing and API reliability.

What this means: This is positive news for KAIA because it makes it easier for Ethereum developers to build on Kaia, offers users more payment options for fees, and improves compatibility with Ethereum. Node operators need to update their software to keep running smoothly.
(Source)

2. Gas Abstraction Metrics (July 13, 2025)

Overview: Gas Abstraction went live, allowing users to pay transaction fees in stablecoins like USDT without needing to hold KAIA tokens.

Updates included:

• Automatic bundling of token swaps and transactions without trust issues.
• Removal of centralized intermediaries for fee payments.

What this means: This change is neutral for KAIA’s token demand since fewer users need KAIA to pay fees. However, it could attract more users and decentralized apps by making it easier to get started. Developers benefit from smoother interactions across different blockchains.
(Source)

3. Consensus Liquidity Integration (August 5, 2025)

Overview: Kaia combined staking and liquidity provision into one streamlined deposit with its Consensus Liquidity protocol.

Key features:

• Users in the KAIA-BORA pool earn both staking rewards and liquidity provider fees.
• A fee-burning mechanism reduces the total supply of KAIA tokens over time.

What this means: This is good for KAIA because it encourages users to hold tokens longer, increases the total value locked (TVL) on the chain, and creates deflationary pressure on the token supply. Liquidity providers get more efficient rewards but should be aware of smart contract risks.
(Source)

Conclusion

Kaia’s updates focus on better Ethereum compatibility, easier fee payments, and more efficient rewards for stakers. The v2.0.3 upgrade and Consensus Liquidity integration show a clear push toward attracting developers and building sustainable token economics. These changes could help Kaia strengthen its position as a leading EVM-compatible blockchain in Asia.