Korea’s Crypto Boom and AI Chip Rally Push Won to World’s Second-Largest Crypto Currency

South Korea has become one of the world’s most active cryptocurrency markets in 2026, with the Korean won accounting for nearly 30% of global spot crypto trading volume, according to Kaiko. The country now ranks second only to the US dollar in fiat-to-crypto trading activity, generating approximately $26 billion in weekly crypto turnover from its population of 52 million people.

Most of Korea’s crypto activity is concentrated on two major exchanges, Upbit and Bithumb, which dominate the domestic market. Data from Kaiko shows that altcoins make up around 85% of weekly trading volume, highlighting strong retail demand for high-risk and high-volatility digital assets rather than Bitcoin-focused investing.

Although South Korea leads in trading intensity, liquidity remains lower than Japan’s institutional-heavy market. Upbit’s order book depth ranges between $1 million and $1.2 million, while Japan’s Bitflyer maintains roughly $3.5 million in depth. Japanese crypto markets trade lower overall volumes but show more stable liquidity conditions, reinforcing the contrast between Korea’s fast-moving retail market and Japan’s institutionally driven structure.

The surge in crypto trading coincides with a powerful rally in Korean technology stocks. The iShares MSCI South Korea ETF (EWY) gained more than 37% year-to-date through March 2026, largely fueled by soaring global demand for AI memory chips. Samsung Electronics and SK Hynix together account for nearly 45% of EWY holdings and remain central players in the global high-bandwidth memory (HBM) market used in AI training infrastructure.

Investor optimism continues to grow as EWY call open interest climbed to a record $5.5 billion in notional value. Analysts believe the positioning reflects aggressive leveraged bets on the long-term expansion of the AI industry, with Korean semiconductor companies at the center of the global AI supply chain.

The AI-driven investment cycle is also impacting US energy markets. Regional Greenhouse Gas Initiative (RGGI) carbon allowances recently surged 31% to $47 per metric ton, driven partly by rising electricity demand from AI data centers. Virginia’s planned return to the emissions program is expected to increase demand further due to the state’s concentration of AI infrastructure facilities.

For Korean investors, the connection is increasingly clear. Growing AI infrastructure spending supports semiconductor demand, boosts Korean equities, and strengthens retail appetite across local cryptocurrency markets. Analysts now view upcoming earnings reports from Samsung and SK Hynix as critical indicators for whether the AI-driven rally and Korea’s crypto trading dominance can continue through the rest of 2026.