Why did the price of KAIA fall?

Kaia (KAIA) dropped 0.7% in the last 24 hours, continuing a 5.3% decline over the past week. This downward trend is driven by weak technical signals and a cautious mood across the cryptocurrency market. Key points to note:

1. Technical Weakness – The price is below important moving averages (7-day average: $0.0764), and the Relative Strength Index (RSI) is at 35, suggesting the coin might be oversold.
2. Stablecoin Partnership Delays – Although Kaia received approval for USDT use in Abu Dhabi on December 9, this hasn’t yet boosted buying activity.
3. Altcoin Market Pressure – Bitcoin’s market share increased to 58.5%, drawing investment away from alternative coins during a period of market fear (Fear & Greed Index at 24/100).

Deep Dive

1. Technical Resistance (Bearish Impact)

Overview: KAIA is trading at $0.0746, which is below its 7-day simple moving average (SMA) of $0.0764 and its 30-day SMA of $0.0796. The RSI over 14 days is 34.99, close to oversold levels but not yet signaling a price rebound.

What this means:

• The price staying below these averages shows weak buying interest.
• The MACD indicator shows only slight upward momentum.
• Immediate resistance is at $0.0761, which is the 50% Fibonacci retracement level; breaking above this could indicate a potential recovery.

Watch: A daily closing price above $0.076 would be a positive sign for a trend reversal.

2. Stablecoin Adoption Delays (Mixed Impact)

Overview: Kaia gained approval for USDT use in Abu Dhabi on December 9 (Coin Edition), but this hasn’t led to sustained buying.

What this means:

• Regulatory approvals often take time before they translate into increased network activity.
• Rumors about KakaoBank launching a stablecoin on December 5 lacked clear timelines, causing uncertainty among traders.
• Kaia’s 24-hour trading volume of $11.9 million (up 62% from the previous day) indicates that selling pressure is currently stronger than buying demand.

Watch: Updates on KakaoBank’s KRW stablecoin integration with Kaia will be important to monitor.

3. Crypto Market Risk-Off Shift (Bearish Impact)

Overview: Bitcoin’s dominance in the market rose to 58.5% as investors moved toward safer assets. The total cryptocurrency market cap fell slightly by 0.03% over the week, and altcoin trading volumes dropped 36% in 24 hours.

What this means:

• Kaia’s small market share (0.015%) makes it more vulnerable during times when investors avoid risk.
• Data from derivatives markets shows traders are hedging their positions, with open interest up 10.8% and funding rates turning negative.

Watch: A sustained Bitcoin rally above $XX,XXX could help renew interest in altcoins like Kaia.

Conclusion

Kaia’s recent price drop reflects technical challenges, delays in stablecoin adoption, and a cautious overall market environment. Although the RSI suggests the coin may be oversold, a recovery depends on Bitcoin stabilizing and clear progress in Kaia’s payment partnerships.

Key watch: Will KAIA hold the $0.0724 support level (its low on December 15) to avoid falling back into the $0.06 range seen in November?

What could affect the price of KAIA?

Kaia is navigating a mix of growing stablecoin use and regulatory challenges.

1. Stablecoin Growth – Adoption of USDT in Abu Dhabi and a new Korean Won stablecoin could increase Kaia’s usefulness.
2. Regulatory Challenges – South Korea’s upcoming stablecoin rules create uncertainty that could impact Kaia’s price.
3. Token Supply Control – Kaia’s system burns a portion of transaction fees, which may reduce the total token supply over time.

In-Depth Look

1. Stablecoin Growth (Positive Outlook)

What’s Happening:
Kaia’s USDT stablecoin got official approval in Abu Dhabi’s financial zone on December 9, 2025 (Coin Edition). Meanwhile, KakaoBank is preparing to launch a Korean Won stablecoin using Kaia’s technology (Coingeek). These moves aim to tap into Kaia’s connection with popular messaging apps KakaoTalk and LINE, which have over 250 million users combined.

Why It Matters:
If these stablecoins gain traction, more transactions will happen on Kaia’s network. Since 5% of transaction fees (gas fees) are permanently destroyed (“burned”), this increased activity could reduce the total number of KAIA tokens available, potentially supporting the token’s value. For context, when Kaia was formed from a merger in 2024, its price jumped 15%.

2. Regulatory Challenges in South Korea (Potential Risk)

What’s Happening:
South Korea’s central bank is against private stablecoins, while lawmakers are debating whether to allow stablecoins issued by non-bank companies (Coingeek). Final decisions are expected by January 2026, which will heavily influence Kaia’s Korean Won stablecoin plans.

Why It Matters:
Strict regulations could slow down Kaia’s partnerships with banks and limit growth. However, KakaoBank’s strong political connections suggest there’s a 60-70% chance that a favorable compromise will be reached, according to industry experts.

3. Tokenomics and Network Activity (Mixed Signals)

What’s Happening:
All 6.19 billion KAIA tokens are currently available on the market, but 0.02% of every transaction is burned. This burn rate reduces selling pressure by about $17,000 daily. However, technical indicators like the Relative Strength Index (RSI) at 34.99 suggest weak momentum.

Why It Matters:
Upcoming network upgrades, such as allowing transaction fees to be paid in USDT (Gas Abstraction), might temporarily lower demand for KAIA tokens. On the other hand, improvements to resist miner extractable value (MEV) in version 2.1.0 could attract more institutional participants. Also, watch for a large token release in August 2025 worth $1.1 million, which could impact supply.

Conclusion

Kaia’s future price depends on turning its Asian stablecoin partnerships into regular network use before South Korea’s regulatory deadline in 2026. While technical indicators show the token is oversold, a 53% drop over 90 days reflects concerns about execution risks.

Key question: Can Kaia’s token-burning system offset the large supply before its stablecoin ecosystem fully develops? Keep an eye on the Korean Won stablecoin pilot launch and daily active user numbers on LINE and KakaoTalk.

What are people saying about KAIA?

The Kaia (KAIA) community is currently experiencing a mix of excitement over potential growth and some hesitation as the market stabilizes. Here’s what’s trending right now:

1. A major network upgrade combined with a new listing on Binance is driving positive technical signals 🚀
2. Large investors, known as whales, are buying more as the KAIA/USDT trading pool reaches $142 million 💧
3. The listing on Taiwan’s BitoPro exchange is sparking hopes for expansion in the Asian market 🇹🇼

Deep Dive

1. Technical Breakout and Ecosystem Growth – Positive Signs

@genius_sirenBSC reports:
“$KAIA reclaims $0.18 pivot on 4,000 TPS upgrade + Binance liquidity surge”
– June 20, 2025
View original post

What this means:
KAIA’s price moving back above $0.18 is a strong technical signal, supported by a network upgrade that boosts transaction speed to 4,000 transactions per second (TPS). The increased liquidity from Binance also strengthens the network’s foundation, suggesting KAIA is becoming more robust and attractive to investors.

2. Taiwan Exchange Listing and Singapore Dollar Trading – Neutral Impact

@BitoEx_Official announces:
“BitoPro lists KAIA on Dec 11, plans SGD trading via PayNow/FAST”
– December 11, 2025
View original post

What this means:
This listing expands KAIA’s availability in Asia, especially with Singapore Dollar (SGD) trading options. However, the impact is neutral in the short term because Taiwan’s stablecoin market is already competitive. BitoPro is a well-established exchange, but KAIA will need to stand out to gain significant market share.

3. Integration into DeFi Portfolios – Positive Outlook

@pukerrainbrow shares:
“LighthouseOne adds KAIA to $2B+ asset portfolios”
– September 16, 2025
View original post

What this means:
KAIA’s inclusion in LighthouseOne’s decentralized finance (DeFi) portfolios, which manage over $2 billion in assets, is a bullish sign. This integration could attract more institutional investors and increase KAIA’s adoption in the growing DeFi space.

Conclusion

The overall outlook for KAIA is mixed. There is technical optimism thanks to recent upgrades and exchange listings, but the competition in Asia’s stablecoin market remains tough. If KAIA can break through the $0.175 price resistance, it could confirm a positive trend (CMC). Also, keep an eye on KAIA’s price correlation with Bitcoin over the next 30 days, which is currently at -16.6%. A lower correlation might indicate that KAIA is gaining momentum independently from broader market movements.

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What is the latest news about KAIA?

Kaia is making progress with regulatory approvals and expanding its ecosystem, even as the overall crypto market faces challenges. Here are the key updates:

1. ADGM Approves USDT on Kaia (December 9, 2025) – Abu Dhabi’s financial center allows Kaia to support Tether’s USDT stablecoin for regulated financial services.
2. KakaoBank Explores KRW Stablecoin (December 5, 2025) – South Korea’s leading digital bank is developing a won-backed stablecoin using Kaia’s technology.
3. AlphaSec DEX Launches (December 4, 2025) – Kaia introduces a fast, decentralized exchange designed for professional traders.

In-Depth Look

1. ADGM Approves USDT on Kaia (December 9, 2025)

What happened:
The Abu Dhabi Global Market (ADGM) has officially approved Kaia as one of nine blockchains that can support Tether’s USDT stablecoin for regulated financial activities. This approval follows similar permissions for Ethereum and Solana, allowing companies licensed in ADGM to offer stablecoin services.

Why it matters:
This is a positive sign for Kaia because it shows growing acceptance by financial regulators in an important global market. It strengthens Kaia’s reputation as a compliant blockchain option for cross-border payments and could bring more investment from the Middle East. (Coin Edition)

2. KakaoBank Explores KRW Stablecoin (December 5, 2025)

What happened:
KakaoBank, South Korea’s biggest digital bank, is working on a stablecoin pegged to the Korean won, built on Kaia’s blockchain. Trademarks like “KRWKaia” suggest it will integrate with Kakao’s popular messaging and payment apps, aiming to make in-app payments easier.

Why it matters:
This development is cautiously optimistic. While regulatory approval is still needed, a bank-backed stablecoin could help bring cryptocurrency into everyday use in South Korea’s $1.7 trillion digital payments market. The project’s success depends on getting the green light from regulators and connecting with KakaoTalk’s 53 million users. (Coingeek)

3. AlphaSec DEX Launches (December 4, 2025)

What happened:
Kaia launched AlphaSec, a decentralized exchange (DEX) that doesn’t hold users’ funds and focuses on fast trades with low fees. The platform plans to add margin trading and aims to attract professional traders with advanced tools.

Why it matters:
This is a positive step for Kaia’s decentralized finance (DeFi) ecosystem. AlphaSec could bring more trading volume and experienced users to Kaia, but its long-term success will depend on how many traders adopt it. Key indicators to watch include total value locked (TVL) and how much KAIA is burned through transaction fees. (CoinMarketCap)

Conclusion

Kaia is focusing on building stablecoin infrastructure and expanding its DeFi offerings by partnering with regulated markets like Abu Dhabi and consumer platforms like Kakao. Even though the overall crypto market remains cautious, these moves position KAIA as a bridge between traditional finance and the emerging Web3 world in Asia. The big question is whether KakaoBank’s stablecoin can overcome regulatory hurdles in South Korea and help bring crypto to the mainstream.

What is expected in the development of KAIA?

I wasn’t able to find useful data to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge base, so if any important information becomes available, I should have it soon. In the meantime, please feel free to choose another question or coin for analysis.

What updates are there in the KAIA code base?

Kaia’s latest software updates focus on improving security against MEV (Maximal Extractable Value), making storage more efficient, and optimizing how nodes run.

1. MEV Auction Launch (Oct 28, 2025) – Introduces an auction system for block space to reduce unfair transaction ordering.
2. Storage Compression Upgrade (Oct 28, 2025) – Cuts node storage needs by about 75% using better data compression.
3. FlatTrie Implementation (Oct 28, 2025) – A new experimental format that lowers archive node disk use by 62.5%.

Deep Dive

1. MEV Auction Launch (Oct 28, 2025)

Overview
The v2.1.0 update adds the MEV Auction system (KIP-249), which requires nodes to open special WebSocket connections just for auction communication. This creates a sealed-bid auction where block builders compete fairly to include transactions.

What this means
This is good news for KAIA because it makes block space allocation more fair and transparent, reducing exploitative MEV tactics. It also opens up new earning opportunities for node operators. However, operators need to update their firewall settings to secure these new connections (Source).

2. Storage Compression Upgrade (Oct 28, 2025)

Overview
LevelDB’s snappy compression is now enabled by default, saving about 2 terabytes of storage on main network nodes. Current node operators can manually trigger a storage cleanup process (debug.chaindbCompact), which takes roughly 10 hours.

What this means
This update lowers the hardware requirements for running a node, making it easier for new operators to join. Existing operators should consider the trade-off between saving storage space and the temporary slowdown during the cleanup.

3. FlatTrie Implementation (Oct 28, 2025)

Overview
The new FlatTrie format is an experimental way to store data that reduces archive node storage from 1.6TB to 600GB at 12 million blocks. It disables some older features like eth_getProof but speeds up syncing by using data structures inspired by Erigon.

What this means
This is promising for developers who need access to historical blockchain data. However, it requires a full resync from the beginning of the chain, which may delay adoption. The significant storage savings could encourage more operators to run archive nodes over time (Source).

Conclusion

Kaia’s October updates strengthen the network by improving MEV resistance, making storage more accessible, and boosting scalability. While these changes require careful setup by node operators, they position KAIA well to support Asia’s expanding stablecoin market. It will be interesting to see if these technical improvements attract developers moving from other EVM-compatible blockchains.