According to recent data from the Bank of Korea, South Korea's virtual asset holdings have seen a significant decline in value over the past year. From January 2024 to February 2026, the total valuation of domestic virtual assets decreased by more than $41 billion, dropping from $82.76 billion to $41.17 billion.
The sharp contraction in trading volume and liquidity has also been observed, with average daily trading volume falling from $11.62 billion in December 2024 to $3.06 billion in February 2025. Meanwhile, won-denominated deposits, which are often viewed as 'waiting funds' for future crypto purchases, dropped from $7.27 billion in late 2024 to $5.30 billion in February.
Analysts suggest that the decline is due to a combination of factors, including a bullish global stock market and a downturn in major cryptocurrencies like bitcoin. As a result, stablecoins have seen an increase in popularity, with holdings reaching a high of $592.7 million in December 2024 and remaining above July 2024 levels despite dipping to $412.5 million by February.