Trading volumes on South Korea’s largest cryptocurrency exchanges have fallen by nearly 90% over the past year, while the KOSPI index has more than doubled. Analysts link the trend to a shift in retail investor interest from digital assets to the stock market.
According to Cointelegraph, the combined average daily trading volume across the country’s five largest crypto exchanges declined from $2.82 billion in July 2025 to $305 million in July 2026.
The analysis covers trading activity on Upbit, Bithumb, Coinone, Korbit, and Gopax. On average, trading volumes across the platforms fell by approximately 77%, while the combined decline reached around 89%.
According to ZDNet Korea, lower trading volumes have also reduced exchange revenue from transaction fees. In particular, Korbit was forced to sell part of its cryptocurrency reserves, disposing of 15 BTC and 60 ETH for approximately $1 million.
South Korea remains one of the world’s largest retail cryptocurrency markets. Analysts believe that declining trading activity could significantly affect liquidity on local exchanges.
Institutional investors replace retail traders
A report by Tiger Research said the decline in cryptocurrency interest cannot be explained solely by asset price performance. Analysts also pointed to investor fatigue with recurring market narratives and a shortage of successful crypto projects.
Meanwhile, the KOSPI index has risen by more than 114% over the past 12 months, providing investors with additional opportunities to generate returns in traditional financial markets.
Analysts believe South Korea’s cryptocurrency market is undergoing a structural shift in which the share of retail investors is gradually declining. At the same time, institutional participants are showing growing interest in stablecoins, tokenized assets, and infrastructure investments.
South Korean authorities continue to develop the country’s digital asset regulatory framework.
On July 20, the government unveiled a roadmap for regulating stablecoins backed by the South Korean won. The plan also includes foreign exchange reforms, the development of tokenized financial instruments, and simplified cross-border settlements using digital assets.
Earlier, South Korea announced a pilot project to issue tokenized government bonds using central bank digital currency infrastructure. The initiative is intended to assess the use of blockchain technology in the government securities market.
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