The decrease in kinetic energy of the atoms is an indication that their temperature is decreasing and the material is losing heat energy.
What is kinetic energy of molecules?
The average kinetic energy of gas particles is proportional to the absolute temperature of the gas, and all gases at the same temperature have the same average kinetic energy.
When we decrease the temperature, less heat energy is supplied to the atoms, and so their average kinetic energy decreases.
When they enter a phase transition, such as freezing from a liquid to a solid, the temperature is not decreasing or increasing, and stays constant.
Hence the decrease in kinetic energy of the atoms is an indication that their temperature is decreasing and the material is losing heat energy.
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