December 2025 I have been circling @KITE AI for a while because it sits in an uncomfortable place. It is not a general purpose chain, and it is not just another AI token trying to borrow relevance. It is building for a future that people talk about confidently, but that has not really arrived yet.
Kite’s premise is simple enough. If autonomous agents are going to operate on their own, they will need identities, spending limits, and payment rails that are designed for machines, not retrofitted from human wallets. That idea makes sense on paper. Whether it matters in practice is still unresolved.
The project came to market with serious backing and enough capital to avoid rushing decisions. Since then, the token has behaved like most new infrastructure assets in a weak market. Early excitement, sharp correction, and then a long stretch where price action says very little about long-term outcomes.
The real question is not price. It is necessity.
What Kite Is Actually Trying to Solve
Kite is an EVM compatible Layer 1 designed around agents instead of people. That distinction sounds cosmetic until you look at how most blockchains assume a single signer with unlimited authority.
Agents do not work that way. At least not safely.
The Agent Passport system is the clearest expression of Kite’s thinking. Instead of one wallet doing everything, identities are split across user, agent, and session layers. Each layer has defined permissions. Spending caps can be enforced by default. This is not exciting, but it solves a real problem. Unbounded agent wallets are not viable outside demos.
Payments are built around extremely low-cost stablecoin transfers. Fees are designed to be close to zero because agents are expected to transact frequently. Even modest fees break most agent-based workflows over time.
Proof of Attributed Intelligence is the most speculative part of the stack. The idea is to route value not just to validators, but to agents, models, and data providers that actually contribute useful work. Conceptually, it is attractive. Practically, attribution inside complex systems is hard. This will either become a differentiator or quietly get sidelined.
Around this core is tooling. SDKs, policy engines, account abstraction, dashboards. Underneath that sit state channels and modular subnets meant to reduce latency and isolate workloads. None of this guarantees adoption. It does make experimentation easier.
Activity Without Over-Reading It
On test networks, Kite has reported a large number of issued agent passports and sustained interaction volume. Test environments are cheap, so I do not treat these numbers as proof of demand.
What they do show is that people are at least trying to build on it. That already puts Kite ahead of many projects that launch loudly and then fade.
Recent integrations have focused on allowing agents to move and pay across different chains rather than being locked into one environment. That is sensible. Agent systems that are not portable will struggle to matter. More work on this front is expected as mainnet matures.
The Token, Stripped Down
$KITE has a fixed supply of ten billion tokens. Roughly eighteen percent is circulating.
At current prices, the circulating valuation looks manageable. The fully diluted number does not. Most of the supply is still locked, and unlocks will matter regardless of how compelling the narrative becomes.
A large share of tokens is allocated to ecosystem growth and incentives. The team and early participants are vested, which reduces immediate pressure but does not remove it.
The token is used for staking, governance, payments inside the network, and access to certain modules. There are also plans to recycle protocol fees back into the system. As with most infrastructure tokens, this only becomes meaningful if usage follows.
Market Reality
Since launch, KITE has followed a familiar pattern. Initial enthusiasm gave way to a sharp correction, followed by sideways movement in a market that has not been kind to new altcoins.
This does not determine the outcome. It does reset expectations.
Where the Risks Are
Execution is the obvious one. Kite is building several non-standard components at once. Identity hierarchies. Agent-native payments. Attribution-based incentives. Any one of these could fail quietly.
Dilution is another. With more than eighty percent of supply still locked, future unlocks will test demand repeatedly.
Competition cannot be ignored. General purpose chains and other AI-focused projects can copy pieces of this stack without committing to a dedicated Layer 1.
There are also regulatory and technical unknowns. Systems that touch autonomous agents and programmable money tend to attract attention once they move beyond experimentation.
Where I Leave It
Kite is not an obvious short-term trade. It is a long-duration bet on the idea that autonomous agents will eventually need financial infrastructure built specifically for them.
If that future arrives quickly, early infrastructure matters. If it arrives slowly, patience and capital discipline matter more.
For now, KITE sits firmly in the high-risk category. The signals worth tracking are basic ones. Are agents still being built. Are payments actually being used. Does the system hold up outside test environments.
Everything else is noise.
#kite
