KOSPI Eats Upbit's Lunch: Korean Crypto Volumes Plunge 89% as Retail Chases the Rally 🍜

South Korea's largest won-based crypto exchanges saw average daily trading volume collapse roughly 89% year over year, falling to $305 million from $2.82 billion in a comparable July 2025 period, according to an analysis of CoinGecko historical 24-hour volume readings across Upbit, Bithumb, Coinone, Korbit and Gopax. The unweighted average decline across the five platforms was about 77%, giving each exchange equal weight regardless of market share. ZDNet Korea separately reported that volume across the five venues was down 88% year-over-year on July 20. The contraction comes as the Korea Composite Stock Price Index (KOSPI) climbed 114.44% over the 12 months to July 22, according to Yahoo Finance, retreating from a June peak. The simultaneous surge in equities and drop in crypto turnover has pointed to a shift in retail speculative appetite from digital assets to stocks.

Fee pressure has already translated into balance sheet moves at smaller platforms. ZDNet Korea said Korbit raised about 1.6 billion won (about $1 million) by selling 15 Bitcoin ($BTC) and 60 Ether ($ETH) to offset weaker trading income, underscoring how dependent South Korean venues remain on retail activity. South Korea is among the most active crypto retail markets globally, with exchanges relying heavily on transaction fees, and a sustained tilt toward equities could thin liquidity and squeeze smaller operators.

A Tiger Research report published on CoinGecko and updated on April 17 said the decline reflects more than price weakness, citing recycled narratives and projects that failed to deliver alongside the KOSPI rally offering investors alternative venues for returns. The report described the market as in a structural transition, with retail stepping back and institutions moving in. Banks and financial groups were already positioning around won-denominated stablecoins, tokenized real-world assets and exchange investments before legislation was finalized, and Tiger said institutional activity could serve as a replacement for some of the retreating retail segment.