South Korea crypto liquidity sinks 55% as investors rotate into local stocks

On-chain data from Allium Labs shows stablecoin balances held in wallets linked to South Korea's five largest crypto exchanges—Upbit, Bithumb, Coinone, Korbit and GOPAX—fell about 55% from July 2025 to mid-March 2026. Balances slid to roughly $188 million from $575 million, pointing to a sharp liquidity drain. The outflow tracked the Korean won's weakness. After the currency broke past KRW 1,500 per U.S. dollar, selling pressure intensified. Bradley Park, founder of DNTV Research, said investors likely sold USD-pegged stablecoins when exchange rates were elevated, converted proceeds back into won and reallocated funds to domestic assets. Brokerage deposits also declined, slipping from about KRW 131 trillion in early March to around KRW 112 trillion. Artemis data shows stablecoin trading volume across Asia increased over the same period, suggesting the pullback is specific to South Korea rather than part of a broader regional trend.