Domestic Investors' Virtual Asset Holdings Drop 60 Trillion Won; Only Stablecoins Increase

The value of virtual assets (cryptocurrencies) held by domestic investors has decreased by more than 60 trillion won over the past year. In contrast, stablecoin holdings, designed to maintain a stable value, showed a contrasting trend by more than doubling.

As of the end of February this year, domestic virtual asset holdings stood at 60.6 trillion won, a decrease of more than half from 121.8 trillion won in January of last year. Average daily trading volume contracted to 4.5 trillion won by the end of February this year, down from 17.1 trillion won at the end of December 2024. Won deposits, considered funds awaiting investment, also fell to 7.8 trillion won from 10.7 trillion won in the same period.

Stablecoin holdings moved in the opposite direction. Holdings, which were 278.2 billion won in January of last year, totaled 607.1 billion won by the end of February this year, more than doubling. After peaking at 872.3 billion won at the end of December last year, holdings saw a slight decrease but showed a smaller decline compared to other virtual assets.

The contraction in virtual asset holdings is analyzed as a result of the booming stock market coinciding with a downturn in the virtual asset market. The increase in stablecoins is interpreted as driven by growing demand for dollar-based investment assets amid a high exchange rate environment.