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Average daily trading volume across South Korea's five major crypto exchanges, Upbit, Bithumb, Coinone, Korbit and Gopax, collapsed about 89% year on year, from $2.82 billion in July 2025 to $305 million, according to CoinGecko data reviewed by Cointelegraph and ZDNet Korea. Over the same window, the KOSPI rose 114.44%.
Why it matters
South Korea's four largest exchanges (the "Big 4" of Upbit, Bithumb, Coinone and Korbit, plus Gopax) have historically been a retail-flow proxy for the broader altcoin market, since Korean retail tends to be among the most active global traders of anything beyond BTC and ETH. A near-90% drop in daily turnover is not a routine cyclical cooling; it suggests retail capital is actively reallocating rather than simply sitting on the sidelines.
Market impact
Weaker fee income is already forcing balance-sheet responses. ZDNet Korea reported that Korbit sold 15 BTC and 60 ETH, raising around KRW 1.6 billion ($1 million) from treasury to cover operating costs, a small but telling indicator that platforms are dipping into crypto reserves to manage cash flow. If the KOSPI rally extends, expect continued drag on altcoin liquidity rather than a quick mean-reversion, since Korean retail rotation is the marginal bid many mid-cap tokens relied on in 2024-2025.
Source: [South Korea Crypto Trading Volumes Fall as KOSPI Surges — Cointelegraph](https://cointelegraph.com/news/south-korea-crypto-volume-decline-kospi-retail-stocks)
Frequently asked questions
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How much did South Korean crypto trading volumes fall?
Average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax fell about 89% year on year, from $2.82 billion in July 2025 to roughly $305 million.
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Why are Korean crypto volumes dropping while the KOSPI is rallying?
The data points to active retail capital rotation out of crypto and into Korean equities, with KOSPI up 114.44% over the same window rather than retail simply sitting on the sidelines.
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Did any of the Korean exchanges sell crypto from their treasuries?
Yes. ZDNet Korea reported that Korbit sold 15 BTC and 60 ETH from its treasury, raising roughly KRW 1.6 billion (about $1 million) to cover operating costs.
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Why does Korean retail crypto activity matter for the broader market?
South Korea's largest exchanges have historically acted as a retail-flow proxy for altcoin demand globally. A near-90% drop in daily turnover suggests weakening marginal bid for mid-cap tokens that Korean traders helped carry in 2024-2025.
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What is the outlook for Korean crypto volumes if KOSPI keeps rising?
Continued KOSPI strength is likely to keep drag on Korean-driven altcoin liquidity, with the trend likely structural rather than seasonal if monthly fee revenue at the big four keeps declining.
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