Is something wrong with the keycoin blockchain and/or client?
Blockchain explorer shows that almost all of the last several hundreds of blocks contain only one transaction (+coinbase).
This transaction has the same input and output addresses (somebody is sending coins back to himself, could this be related to PoS?). There are almost no normal transactions.
Can someone answer this post? Why there are almost no normal transactions in the blockchain? Only Bagpipe has given reasonable explanation (that enormous amounts of coins are owned by very small number of people who obviously have no need to do transactions). But his answer doesn't explain why number of transactions was much higher before (the people in this small group probably owned enormous amounts of coins from the beginning).
Ask yourself a different question: who would transport coins where and for what reason?
Either you have your coins in an exchange or in your wallet and try to generate more.
Basically, the release model of this coin is made in a way that is likely to generate exponential rise in the price, but then, the coin count rise is ALSO exponential and one day the coin amount will catch up with it.
That may trigger a bigger sell-off, slashing the price and secondary wallet movements and resultant price fluctuations. Then again the price will settle for a while, while the new coin owners exponentially breed them again.
The exponential breeding is the main "killer feature" of the coin, it makes the price unsustainable, basically worse than FIAT currencies, where 20% money print supply over the previous year would be considered as something like Zimbabwean dollar experiment. Either it will be killed, benefitting the early holders greatly (thus no fair distribution, but hey, that is the point of gettin rich, correct?) or not get killed and making thus the coin another ZimDollar. In crypto terms: DOGE, Microcoin, etc.
So for now the explanation is plain: holders are holding and nobody uses it for payments, everybody is happy with having full wallets and/or trading on exchanges, few early adopters will benefit greatly if the whole marketing and PR thing does not fail. As simple as that.