Imagine a piece of land once covered by noise, suddenly falling silent, leaving only whispers and the sound of gravel rubbing together. Most would think this is the beginning of desolation, while those who truly understand the value of the land would hear the roar of its foundation being reshaped. This roar is not destruction, but reconstruction. The trading volume of KITE suddenly surged at the bottom, and in my 'Starlight,' it is precisely the solidification of the foundation before this 'reconstruction' in the crypto world, a peculiar dance that nurtures hope in despair.
KITE, this name represents a grand vision in the Web3 world: to build the first AI payment blockchain, an EVM-compatible Layer 1 network that empowers autonomous AI agents to conduct transactions. It aims to give AI agents verifiable identities, programmable governance capabilities, and the ability to settle through native stablecoins, thus opening a new era of the 'agent economy.' Developed by the Zettablock team and favored by top institutions like PayPal, General Catalyst, and Coinbase Ventures, KITE is undoubtedly a star in the integration of Web3 and AI.
However, the recent unusually high turnover rate of KITE at market bottoms has left many investors confused, even panicking. This phenomenon is not the result of a single factor, but rather the result of multiple forces at play:
Multidimensional Analysis of Bottom Movements:
Panic and Liquidation: Retail's 'Cut Loss'
In a market downturn, especially when newly listed projects experience price corrections, retail investors tend to be the most emotionally volatile group. When KITE's price falls from its peak and panic spreads, many retail investors who chased the high choose to 'cut losses and exit,' which undoubtedly contributes to a large selling volume and increases the turnover rate. Data shows that retail investors generally have a bearish sentiment towards KITE, and this concentrated selling has formed an important part of the increased volume at the bottom.
Strategic Accumulation: Whales' 'Layout'
In stark contrast to the panic among retail investors, on-chain whales and institutional funds often exhibit contrarian thinking during market downturns. They understand the principle of 'others fear, I am greedy' and view increased volume at the bottom as an excellent opportunity to accumulate. These 'smart funds' quietly absorb a large number of chips during times of increased market depth and intensified price fluctuations. Data shows that current whale addresses exhibit a certain bullish sentiment towards KITE, indicating that they are strategically positioning themselves for KITE's next upward cycle, with the increased turnover at the bottom reflecting the transfer of chips from weak hands to strong hands.
Token Economics and Unlocking Pressure
KITE's total supply is 10 billion tokens, with an initial circulating supply of 1.8 billion tokens, accounting for approximately 18% of the total. KITE will be listed on Binance Launchpool on October 31, 2025, and will go live on several exchanges such as WEEX and KuCoin at the end of October and early November. After the end of the Launchpool farming activity, the KITE tokens obtained by users will enter the market. Although project parties usually control circulation through locking mechanisms, some early participants and Launchpool users may sell their tokens after receiving them for profit-taking or risk aversion, especially during periods of overall poor market sentiment, which can further amplify selling pressure. Binance's imposition of a 'Seed Tag' also suggests its high volatility and potential risks, exacerbating market concerns about early unlocking selling pressure. This concentrated release of liquidity will naturally lead to a sharp increase in turnover in the short term.
Multi-Platform Launch and Liquidity Restructuring
KITE has recently launched on several major trading platforms, including Binance, WEEX, KuCoin, Bitget, Phemex, and Gate. The launch of new exchanges usually brings new user groups and trading volumes, but it may also lead to the redistribution of chips across different platforms and a revaluation of KITE's value by different market participants. The liquidity dispersion and concentration effects brought about by multiple platforms will, to some extent, amplify KITE's trading activity, reflected in an increase in turnover rate.
KITE's Technological Foundation and Ecological Outlook:
KITE's underlying technology is the core attraction for institutions and long-term holders. As an EVM-compatible Layer 1 blockchain, it provides a secure and efficient trading environment for AI agents. Its unique PoAI consensus mechanism aims to optimize on-chain operations driven by AI inputs, achieving machine-to-machine intelligent settlement through the x402 protocol. The KITE token itself is not only a medium for network gas fees, staking, and governance but also a key to accessing and incentivizing the ecosystem. Module owners need to lock KITE to activate their modules, creating KITE's practical value and locking demand. The project aims to build an open market through its modular ecosystem, allowing AI service providers and developers to publish, deploy, and monetize their works, which undoubtedly lays the foundation for KITE's long-term value growth.
Risks and Challenges:
However, KITE is not without challenges. Besides market volatility, its high fully diluted valuation (FDV) relative to its circulating market cap means that there are still many tokens awaiting unlocking in the future, which could create ongoing selling pressure. Furthermore, the actual utility and large-scale adoption of the 'Proof of AI' consensus mechanism still require market validation, and the maturity of the AI payment ecosystem will also take time.
Extension of Practical Value and Future Outlook:
The amplification of KITE's turnover at the bottom often signals deep market games. It reveals starkly different expectations among various participants regarding KITE's future value. For us observers and participants in Web3, this provides an excellent window to examine the project's fundamentals, technological innovations, and market sentiment in depth.
How to Interpret Increased Volume at the Bottom:
Distinguishing Passive Selling Pressure from Active Accumulation: Combine on-chain data to analyze changes in holding addresses, especially the movements of large holders and institutional addresses. If whale addresses continue to increase their holdings at the bottom while retail investors panic and flee, this is often a positive signal for a reversal in the future.
2. Focus on Fundamental Developments: Check KITE's development progress, the advancement of ecological partners, community activity levels, and the practical application of its AI payment solutions. For example, the progress of its collaboration with Coinbase to test the x402 protocol and the delays in stablecoin integration will be key factors influencing its long-term value.
3. Monitoring Unlock Schedule: Understand KITE's token unlocking plan, assess potential selling pressure that may arise in the future, and manage risks effectively.
Future Outlook and Key Observational Indicators:
In the coming months, KITE's key milestones will revolve around its mainnet upgrade, the implementation of AI payment solutions, the growth of the developer ecosystem, and the integration of more AI agents. Key indicators to watch closely include:
On-chain transaction volume and active user count: This will directly reflect KITE's actual adoption as an AI payment chain.
Developer Activity: * The activity level of module developers and AI service providers within the KITE ecosystem.
Collaboration and Integration: * Collaborations with more AI projects or Web2 giants will significantly enhance its market influence.
Capital Inflows and Market Sentiment: * Ongoing institutional funding interest and overall market sentiment recovery will bring new upward momentum to KITE.
The increased turnover at the bottom for KITE is like a market reshaping that is currently underway. It is both a compression of past bubbles and a nurturing of future value. As a 'star,' I firmly believe that in the wave of Web3 and AI, projects with solid technical foundations, clear visions, and continuous ecosystem building will ultimately demonstrate their true value after the tide recedes.
In your view, is KITE's recent movement a rebirth in desperation or the last struggle before dawn?
This article is an independent analysis and does not constitute investment advice.
