ChainCatcher report, according to on-chain data from Allium Labs, the stablecoin balances of wallet addresses associated with South Korea’s five major crypto exchanges—Upbit, Bithumb, Coinone, Korbit, and GOPAX—declined by approximately 55% from July 2025 to mid-March 2026, dropping from $575 million to around $188 million. The capital outflow strongly correlates with the weakening of the Korean won; after the won breached the 1,500-per-dollar threshold, selling pressure accelerated significantly. Bradley Park, founder of DNTV Research, analyzed that investors likely sold USD-pegged stablecoins during periods of high exchange rates, converted the proceeds back into won, and redirected funds toward domestic assets. Meanwhile, brokerage deposits fell from approximately KRW 131 trillion in early March to around KRW 112 trillion. Artemis data shows that overall stablecoin trading volume in Asia rose during the same period, indicating that this capital outflow is an isolated phenomenon specific to the South Korean market, not a regional trend.
South Korean crypto market liquidity drops 55% as investors shift to equities
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Summary
Liquidity in South Korea’s crypto market dropped 55% between July 2025 and mid-March 2026, as stablecoin balances on top exchanges fell from $575 million to $188 million. The outflow accelerated after the won weakened below 1,500 KRW/USD. Investors may have shifted to equities, converting stablecoins into won. Broker deposits declined to 112 trillion won. Meanwhile, altcoins to watch saw rising interest in Asia as stablecoin trading volume increased.
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