Domestic coin trading plunges…investment funds move to the stock market

Son Min

Summary

It reported that the virtual asset trading volume of major domestic exchanges decreased by 44.93% compared to the beginning of the year.
Meanwhile, KOSPI trading volume increased by 207.57%, indicating that investment funds have moved to the stock market.
Global virtual asset trading volume increased, but the domestic market showed a decline, highlighting the divergence in trends.

While the domestic stock market continues to show strength, the virtual asset market is sharply contracting. While KOSPI's trading value has more than tripled compared with the start of the year, trading value on major domestic exchanges has fallen to about half.

According to the Korea Exchange, as of the 3rd, KOSPI's daily trading value was 34.039 trillion won, up 207.57% from January 2, the first trading day of the year (11.0669 trillion won). The KOSPI index is also continuing its upward trend.

By contrast, according to CoinGecko, the same day's 24-hour trading value on Korea's five major virtual asset exchanges (Upbit·Bithumb·Coinone·Korbit·Gopax) was 5.5724 trillion won, down 44.93% from the beginning of the year. Currently, the domestic coin market's trading value is about 16% of KOSPI's. Market participants view this as domestic investors moving from coins to stocks.

The divergence from global markets is also clear. Over the month of October, global spot trading volume for virtual assets was 2.17 trillion dollars, up 28.4% from August (1.69 trillion dollars), surpassing 2 trillion dollars for the first time this year. However, domestic virtual asset trading volume recorded its lowest level so far this year.