Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff editor

Written by Ezra Reguerrastaff writer

Reviewed by Yohan Yunstaff editor

South Korea crypto volumes shrink as retail investors shift to stocks

Latest NewsPublishedJul 22, 2026

Shift in Retail Investors’ Interest: From Crypto to Stocks

The surge in South Korea’s stock market has led to a significant decline in trading activity on the country’s major crypto exchanges. As the Korea Composite Stock Price Index (KOSPI) more than doubled, volumes across the largest won-based crypto platforms contracted. This shift in retail investors’ interest toward equities may have a significant impact on the crypto market.

The decline in trading activity on crypto exchanges is a notable trend, with volumes falling sharply over the past year. This decrease in trading activity may be attributed to the rise of the KOSPI, which has given retail investors more opportunities to pursue returns. The shift in investor attention toward equities could weaken crypto liquidity and squeeze smaller platforms.

Impact on Crypto Exchanges

The decline in trading activity has resulted in a significant drop in average daily volume, with some exchanges experiencing a decline of up to 89%. This has led to weaker fee income, prompting some platforms to sell their crypto holdings. For example, Korbit raised about 1.6 billion won by selling 15 Bitcoin and 60 Ether.

South Korea is one of the most active retail markets for crypto, with exchanges relying heavily on trading fees. A sustained preference for equities could reshape how local investors allocate capital between speculative assets. However, this shift may also create opportunities for institutional investors to step in and fill the gap.

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South Korea is one of crypto’s most active retail markets, with exchanges relying heavily on trading fees. A sustained preference for equities could weaken crypto liquidity and squeeze smaller platforms, reshaping how local investors allocate capital between speculative assets. 

Korea Composite Stock Price Index’s one-year chart. Source: Yahoo Finance

South Korea’s KOSPI rose 114.44% over the 12 months to July 22, according to Yahoo Finance data, even after retreating from its peak in June. The rally contrasts with shrinking activity on won-based crypto exchanges, suggesting retail investor attention is shifting toward equities. 

Retail fatigue gives institutions room to step in 

A Tiger Research report published on CoinGecko and updated on April 17 said that South Korea’s falling crypto activity reflects more than weaker prices. The report said recycled narratives and projects that failed to deliver contributed to investor fatigue, while the KOSPI rally gave retail traders more places to pursue returns. 

Tiger Research said the widening gap between equity turnover and crypto volume did not necessarily mean that Koreans had lost interest in crypto, but rather that investors had more alternatives. 

Related: South Korea eyes September launch for second phase of CBDC pilot: Report

The report described the market as in structural transition with retail investors stepping back while institutions move in. Banks and financial groups were positioning around won-denominated stablecoins, tokenized real-world assets (RWAs) and exchange investments even before legislation was finalized. 

Tiger said institutional activity could be a healthy replacement for some of the retreating retail participation, although institutions were still finding their footing. 

Magazine: Inside the ‘fake police raid’ that forced a $1M Bitcoin transfer

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• South Korea
• Data
• Cryptocurrency Exchange
• Stocks
• Upbit
• Bithumb
• Korbit
• Industry

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