South Korea crypto liquidity tumbles as stablecoin balances plunge 55% and stock heat up
South Korean crypto liquidity is decreasing as stablecoin holdings fall 55% while investment in stocks rises, driven by a weakening won.Summary
On-chain data reveals a significant decrease in stablecoin holdings in South Korea since July, coinciding with a rise in stock inflows. Stablecoin balances across the country’s five largest crypto exchanges have plummeted 55%, from $575 million in July 2025 to $188 million in mid-March, triggered by the won’s decline past 1,500 per dollar. This suggests traders are converting dollar-denominated holdings into won and investing in domestic assets, particularly equities. The KOSPI has seen substantial gains, up 75% in 2025 and another 37% this year, largely fueled by Samsung Electronics and SK Hynix. This shift is also supported by government policies encouraging reinvestment in domestic markets. While broader stablecoin transaction volumes across Asia are increasing, the Korean drawdown indicates a specific domestic capital rotation, potentially impacting crypto market liquidity.
(Source：CoinDesk)