Won-based crypto exchange volumes decline as investors chase 114% KOSPI rally over the past year, per market data.
South Korea’s retail investors are shifting capital from cryptocurrencies to equities, driving a 114.44% surge in the KOSPI index over the past 12 months. The move follows a retreat from won-based crypto exchanges, where volumes have shrunk despite stablecoin and tokenized asset growth.
Crypto activity has fallen due to investor fatigue from recycled narratives and underdelivering projects, according to a Tiger Research report. Meanwhile, the KOSPI’s rally has provided retail traders with alternative high-return opportunities, widening the gap between equity and crypto turnover.
Institutional players are stepping in, focusing on won-denominated stablecoins and tokenized real-world assets. While retail participation declines, banks and financial groups are positioning ahead of finalized legislation, signaling a structural market transition.