The value of virtual assets held by domestic investors fell by more than 60 trillion won in a little over a year. As prices of virtual assets, including Bitcoin, dropped sharply, funds appear to have moved to the securities market. In contrast, stablecoin holdings more than doubled over the same period.
According to data the Bank of Korea submitted on the 5th to Rep. Cha Kyu-keun of the Rebuilding Korea Party, a member of the National Assembly's Strategy and Finance Committee, domestic virtual asset holdings totaled 60.6 trillion won as of the end of February this year.
Virtual asset holdings steadily rose from 5.06 trillion won at the end of Aug. 2024 and peaked at 121.8 trillion won in January last year. However, by the end of February this year, they had fallen to less than half.
The average daily virtual asset transaction value also increased from 2.7 trillion won at the end of Aug. 2024 to 17.1 trillion won at the end of December of the same year. However, by the end of February this year, it stood at around 4.5 trillion won.
Won-denominated deposits, regarded as idle funds waiting to be invested on virtual asset exchanges, were around 10.7 trillion won at the end of December 2024 but fell to 7.8 trillion won as of the end of February this year.
In contrast, stablecoin holdings gradually increased from 88.5 billion won at the end of July 2024 and peaked at 872.3 billion won at the end of December last year. By the end of February this year, they had fallen to 607.1 billion won, but the decline was smaller than that of existing virtual assets such as Bitcoin.
Analysts say the declines in virtual asset holdings and transaction values in Korea stem from bullish stock markets at home and abroad, weakness in the virtual asset market, and an overall drop in valuations. At the same time, the increase in stablecoin holdings appears to be based on stronger demand for dollar-based investment assets due to the high exchange rate and rising interest in stablecoins.