South Korea's Crypto Volumes Plummet as Investors Flock to Stocks

South Korea's crypto trading volumes have dropped significantly in Q1 2026, from 125.2 trillion won to 98.1 trillion won. This decline has raised concerns that the country's crypto market may be losing interest, but experts say it's actually a sign of maturity.

The main reasons behind this drop are investors shifting towards long-term holdings, capital being attracted to South Korea's thriving stock market, rising oil prices, and higher interest rates. These factors have reduced appetite for risky assets, including cryptocurrencies.

Despite Upbit and Bithumb controlling around 96% of the trading volume, authorities are trying to reduce market concentration by implementing ownership caps under the Digital Asset Basic Act (DABA) Phase 2.