South Korea Leads East Asia’s Crypto Economy as AI Tokens Surge

South Korea had East Asia’s largest cryptocurrency economy in the year through June 2026, with activity reaching $449.1 billion as retail investors showed unusually strong interest in tokens linked to artificial intelligence, according to a new industry report.

Blockchain analytics company Chainalysis estimated that the Korean market grew 12.3 percent from the previous one-year period. The total was nearly twice Japan’s $228.3 billion, while Hong Kong recorded $192.2 billion, China $176.3 billion and Taiwan $140.4 billion.

The findings underline the scale of South Korea’s digital-asset market despite relatively limited participation by major financial institutions. Trading remains heavily shaped by individual investors using centralized exchanges, making shifts in retail sentiment particularly influential.

AI-related cryptocurrencies emerged as the most prominent theme. In June, they accounted for about 18 percent of Korean won-denominated crypto trading, surpassing payment-focused assets as the largest thematic category. The share was roughly 19.5 times the 0.91 percent recorded for yen-denominated trading in Japan, and was also substantially higher than comparable levels in markets using the Brazilian real, British pound and euro.

Worldcoin led AI-related token trading in South Korea with volume of $7.41 billion. Sahara AI followed with $3.2 billion, Virtuals Protocol with $2.7 billion, Bio Protocol with $2 billion and NEAR Protocol with $1.7 billion. The pattern mirrored Korean investors’ enthusiasm for AI-linked equities, including major domestic semiconductor companies that have benefited from global demand for computing infrastructure.

The market’s structure could shift in 2027. A long-delayed 22 percent tax on cryptocurrency gains is scheduled to take effect, while access for corporate investors is expected to expand. Chainalysis said greater institutional participation could provide a meaningful counterweight if retail activity weakens.

Other East Asian markets showed different characteristics. Institutional platforms accounted for 16 percent of inflows into crypto services in Hong Kong, decentralized exchanges represented 34.5 percent of Japan’s crypto-services market, and peer-to-peer transfers were estimated to drive 59.1 percent of China’s digital-asset economy.

For South Korea, the figures highlight both the depth of crypto participation and its concentration in fast-moving retail trends. The combination leaves the market well positioned to adopt new investment themes quickly, but also sensitive to changes in taxation, regulation and investor appetite.