Trading value at South Korea’s five major won-based cryptocurrency exchanges fell by as much as 89% over the past year, data showed. Over the same period, the KOSPI more than doubled, and an analysis said retail investors’ money has clearly moved from the crypto market to the stock market.

Cointelegraph reported on July 22 that the comparison was based on CoinGecko 24-hour trading volumes for Upbit, Bithumb, Coinone, Korbit and Gopax. A comparison of seven-day volumes in July 2025 and July 2026 showed the simple average decline in trading value across the five exchanges was about 77%.

The decline was larger on an aggregated basis that reflects each exchange’s weight. Average daily trading value fell to $305 million from $2.82 billion, a drop of about 89%.

South Korean stocks, by contrast, maintained a strong trend. The KOSPI rose 114.44% over the past year based on Yahoo Finance data. It has seen some correction since a June peak, but the analysis said the simultaneous drop in crypto trading and stock market rally confirms signs that retail investors’ funds moved into stocks.

With fee income shrinking, some exchanges are cashing in their crypto holdings. Korbit is reported to have sold 15 bitcoins and 60 ether to secure about 1.6 billion won.

Another analysis said it is difficult to attribute the market slump simply to falling prices. Tiger Research said in an April report that the decline in domestic crypto trading reflects not only a bear market but also growing investor fatigue as repetitive investment narratives and underperforming projects have accumulated.

The report also cited the KOSPI’s rise, which has expanded retail investors’ investment alternatives, as a key factor behind the drop in trading. It said domestic investors have not necessarily lost interest in crypto itself, but have gained more options where they can expect returns. Tiger Research assessed that the domestic crypto market has entered a structural transition from retail-led to institution-led participation.

An analysis said banks and financial groups are continuing preparations to seize new business opportunities, including won-based stablecoins, tokenisation of real-world assets (RWA) and investments in cryptocurrency exchanges, even before related legislation is finalised.

Institutional funds are expected to become a new source of liquidity that can partly replace the reduced participation of retail investors. Another view said institutions are also in the early stages of gaining a foothold, making it difficult to fully fill the retail trading gap in the short term. As a result, attention in South Korea’s crypto market is likely to shift from whether retail trading recovers to changes in money flows and investor composition.

Exchanges with heavy reliance on trading fees are expected to face unavoidable performance pressure as liquidity falls. For small and midsized exchanges with weaker business foundations than large exchanges, diversifying revenue structures and business restructuring are expected to emerge as key tasks.