KAIA Soars 20% on South Korea’s Stablecoin Bill: Is This Just the Beginning?

South Korea’s crypto market just got a jolt of adrenaline—KAIA skyrocketed 20% overnight after regulators dropped a bombshell stablecoin bill. Traders are scrambling, but is the rally built to last?

The bill—touted as a ‘regulatory sandbox’—gives compliant stablecoins a free pass while cracking down on wildcat issuers. KAIA’s backers are cheering, but skeptics whisper this could be another case of ‘buy the rumor, sell the news.’

Here’s the kicker: the Financial Services Commission (FSA) insists this isn’t a free-for-all. Stablecoin projects must now prove reserves, submit audits, and—wait for it—actually protect investors. Revolutionary, right?

Meanwhile, KAIA’s trading volume tripled as speculators piled in. ‘This legitimizes the entire ecosystem,’ gushed one analyst. ‘Or it’s a trap,’ muttered a hedge fund manager while shorting the bounce.

Bottom line: South Korea’s playing chess while crypto markets play checkers. Either way, grab popcorn—this regulatory drama has more twists than a K-drama.

Big wallets pause, but big players still play

Surprisingly, while KAIA prices have skyrocketed, significant on-chain metrics have not triggered bull alerts yet.

Stablecoin whale accumulation had been increasing progressively until halfway through May, which was a sign that whales were buying up early.

However, the trend has since then decelerated, with current whale orders falling off.

Source: CryptoQuant

Having said that, broader institutional appetite appears intact.

Open Interest on Binance reached new highs as KAIA’s rally gained momentum. This signals that deep-pocketed players may still be positioning behind the scenes, even as whale spot activity shows hesitation.

Institutional trading appears to be steering the stablecoin market, according to current order FLOW and sentiment metrics.

Source: CoinGlass

Moreover, KAIA’s unique positioning as the output of the Klaytn-Finschia chain merger reinforces its long-term viability.

The merger aimed to improve scalability and cross-chain operability, both major concerns for L1 projects.

What does the future hold for KAIA?

In the short term, fading whale momentum could cap gains unless fresh spot demand returns.

But the broader picture suggests structural support: Institutional positioning, network upgrades, and a regulatory tailwind may all converge to sustain momentum.

Unless market structure shifts or external risk events interfere, Kaia appears set for more upside, at least until the narrative burns out or gets priced in.