Data compiled by Woofun AI shows that South Korean retail cryptocurrency transactions totaled $69 billion during the first quarter of 2023, representing a 28% decline year-on-year. This volume secured the second-highest global ranking, trailing only the United States, which recorded $212 billion in transaction activity. Other major markets included Russia at $48 billion, India at $46 billion, and Turkey at $40 billion.

Analysts attribute the contraction in crypto engagement to a surge in artificial intelligence-driven semiconductor stocks within the South Korean equity market. This sectoral boom attracted substantial retail capital, effectively redirecting investor risk preference away from digital assets. In some instances, daily gains for components of the KOSPI index surpassed those of leading cryptocurrencies, further incentivizing the shift toward traditional equities.