SEOUL, July 23 (AJP) - Trading at South Korea's major cryptocurrency exchanges has plunged to a fraction of the stock market's level amid a prolonged slump in the digital asset market, as investors shift funds to stocks, industry data showed on Thursday.
The average daily trading volume at South Korea's five major crypto exchanges - Bithumb, Coinone, Korbit, Gopax and Upbit - stood at 597.8 billion won (US$400 million) during the first 21 days of this month, according to crypto market tracker CoinGecko.
The figure was equivalent to just 1.59 percent of the benchmark KOSPI's average daily trading volume of 37.67 trillion won over the same period.
The ratio of crypto trading volume to the KOSPI has steadily declined this year. After edging up from 11.29 percent in January to 12.03 percent in February, it fell to 6.24 percent in March and 6.67 percent in April before plunging to 2.03 percent in May. The ratio recovered to 6.93 percent last month but dropped back to the 1 percent range this month.
Monthly crypto trading volume also shrank to around 3 trillion won in January and February before falling to around 1 trillion won from March through May this year. By contrast, average monthly trading volume on the KOSPI rose from around 27 trillion won in January to more than 50 trillion won in both May and June.
The slowdown marks a sharp reversal from late 2024, when trading on domestic crypto exchanges surged amid optimism that the election of U.S. President Donald Trump would usher in more crypto-friendly policies, lifting daily trading value briefly above 21 trillion won in November last year.
Market watchers attributed the decline to falling Bitcoin prices, combined with a rush of capital into equities fueled largely by buying of chip stocks amid an artificial intelligence (AI)-driven stock market rally, as Bitcoin remains roughly half of its record high of around $126,000 reached last year.
Limited trading options at domestic exchanges have also been cited as a factor behind the decline. While overseas platforms offer products such as futures and leveraged trading, South Korean exchanges are largely limited to spot trading.
Crypto trading has also become increasingly concentrated here, with Bithumb and Upbit accounting for more than 90 percent of total domestic volume, leaving the remaining three exchanges with less than 10 percent.
The average daily trading volume at South Korea's five major crypto exchanges - Bithumb, Coinone, Korbit, Gopax and Upbit - stood at 597.8 billion won (US$400 million) during the first 21 days of this month, according to crypto market tracker CoinGecko.
The figure was equivalent to just 1.59 percent of the benchmark KOSPI's average daily trading volume of 37.67 trillion won over the same period.
The ratio of crypto trading volume to the KOSPI has steadily declined this year. After edging up from 11.29 percent in January to 12.03 percent in February, it fell to 6.24 percent in March and 6.67 percent in April before plunging to 2.03 percent in May. The ratio recovered to 6.93 percent last month but dropped back to the 1 percent range this month.
Monthly crypto trading volume also shrank to around 3 trillion won in January and February before falling to around 1 trillion won from March through May this year. By contrast, average monthly trading volume on the KOSPI rose from around 27 trillion won in January to more than 50 trillion won in both May and June.
The slowdown marks a sharp reversal from late 2024, when trading on domestic crypto exchanges surged amid optimism that the election of U.S. President Donald Trump would usher in more crypto-friendly policies, lifting daily trading value briefly above 21 trillion won in November last year.
Market watchers attributed the decline to falling Bitcoin prices, combined with a rush of capital into equities fueled largely by buying of chip stocks amid an artificial intelligence (AI)-driven stock market rally, as Bitcoin remains roughly half of its record high of around $126,000 reached last year.
Limited trading options at domestic exchanges have also been cited as a factor behind the decline. While overseas platforms offer products such as futures and leveraged trading, South Korean exchanges are largely limited to spot trading.
Crypto trading has also become increasingly concentrated here, with Bithumb and Upbit accounting for more than 90 percent of total domestic volume, leaving the remaining three exchanges with less than 10 percent.
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