Why is the South Korean won dominating crypto trading volumes?

The South Korean won now accounts for about 30% of global crypto spot trading in 2026. This surge is driven by strong retail participation and high trading activity in South Korea. It makes the won the second-largest fiat currency in crypto markets after the US dollar.

How big is South Korea’s crypto market right now?

South Korea generates around $26 billion in weekly crypto trading volume. Most of this activity is concentrated on Upbit and Bithumb. This highlights how large and active the domestic market has become.

Why are altcoins so popular in South Korea?

About 85% of trading volume in South Korea is in altcoins rather than Bitcoin. This suggests a strong appetite for higher-risk, higher-volatility assets. Retail traders often chase short-term gains, which drives altcoin dominance.

How does South Korea’s crypto market compare to Japan?

South Korea has higher trading volume but thinner liquidity compared to Japan. Japan’s market is smaller but more stable and institutionally driven. This means Korea’s market can be more volatile.

What is driving the broader market momentum in South Korea?

The crypto surge is linked to a strong rally in Korean equities. The iShares MSCI South Korea ETF (EWY) is up more than 37% year-to-date. This reflects broader investor risk appetite fueled by the AI boom.

How are Samsung and SK Hynix connected to this trend?

Samsung Electronics and SK Hynix dominate the global market for AI memory chips. Their growth is driving investor optimism in Korean markets. This optimism spills over into crypto trading activity.

What does the $5.5 billion EWY options activity mean?

Record call option positioning on EWY suggests traders expect further upside in Korean equities. This reflects strong bullish sentiment tied to AI demand. It also signals increased risk-taking behaviour in related markets.

How is AI demand influencing crypto trading?

The AI infrastructure boom is increasing demand for chips, equities, and even energy. This creates a broader “risk-on” environment where investors are more willing to trade crypto. Crypto activity often rises alongside speculative cycles.

Cryptocurrency

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Korean won drives 30% of global crypto trading

Written by Heidi Cuthbert Published May 6, 2026, 2:15 AM

The South Korean won accounts for about 30% of global crypto spot trading in 2026, making it the second-largest fiat market after the US dollar, according to Kaiko.

Weekly crypto turnover in South Korea has reached roughly $26 billion, with activity concentrated on Upbit and Bithumb, where altcoins dominate around 85% of trades.

Altcoin-heavy flows and thinner liquidity compared to Japan highlight a retail-driven, high-volatility market structure in South Korea.

The surge in crypto trading coincides with a rally in Korean equities, with the iShares MSCI South Korea ETF (EWY) gaining more than 37% year-to-date as demand for AI memory chips accelerates.

Record call option positioning on EWY, reaching $5.5 billion, reflects strong bullish sentiment tied to chipmakers Samsung Electronics and SK Hynix.

Rising AI infrastructure demand is also impacting global energy markets, with US Northeast carbon prices hitting a four-year high as data centre expansion drives electricity demand.

The trend suggests Korean crypto activity is closely linked to broader AI-driven risk appetite, with future momentum tied to chip sector performance and capital expenditure cycles.