South Korea’s crypto trading volume surged as extreme stock-market volatility pushed traders toward alternative liquidity venues.
Across five major exchanges, trading volume reached $964 million on the 28th of July. That marked an 82% increase over the previous month’s daily average.
Why did Korean crypto volume surge?
On Upbit, KRW-USDT trading volume jumped 600%, rising from $20 million to nearly $140 million. The exchange’s total volume climbed from $292.7 million to approximately $743 million before retreating.
On Bithumb, trading volume increased 438%, from $81 million to $436 million.
Although volume later fell to $144 million, it remained above the week’s lowest levels. That activity emerged as South Korea’s stock market suffered an historic sell-off.
Did traders abandon stocks for crypto?
The KOSPI, South Korea’s benchmark stock index, dropped more than 20% over five days amid a semiconductor sell-off. The index also triggered circuit breakers during the sell-off.
Between the 28th and 29th of July, the market lost approximately 864 trillion won in value.
PredictiveMoney suggested some investors rotated capital into digital assets instead of traditional havens. The analyst highlighted the 82% exchange-volume increase and rising USDT activity as evidence.
However, this did not confirm that equity capital directly entered crypto.
Seoul Economic Daily offered another explanation. Crypto holders may have sold assets to meet margin obligations elsewhere. Others may have moved funds overseas to trade Korean equity derivatives.
Therefore, the volume spike likely reflected both defensive positioning and liquidity demand.
Could the KOSPI rebound reverse flows?
South Korean stocks subsequently staged a sharp recovery.
Crypto Rover estimated that 720 trillion won returned to the market during the rebound. At press time, the KOSPI had risen 18.27% to 6,615.60, gaining 1,022.04 points.
That rebound recovered much of the previous decline and demonstrated continued appetite for Korean equities.
If traders follow the stock recovery, crypto volumes could retreat from their recent highs. Still, the sell-off exposed how quickly Korean capital can move when volatility erupts.
Final Summary
- Korean crypto trading volume climbed 82% to $964 million during the KOSPI sell-off.
- Upbit’s KRW-USDT volume surged 600%, suggesting strong demand for stablecoin liquidity.