South Korea tops East Asian crypto market as AI tokens surge

According to Chainalysis, South Korea's digital asset sector expanded significantly in the most recent twelve-month period, surpassing Japan, Hong Kong, China and Taiwan to become the region's biggest crypto economy. The growth was propelled largely by retail participants, while major financial institutions stayed on the sidelines. AI-related cryptocurrencies emerged as the leading thematic category, accounting for roughly one-fifth of all won-denominated crypto trades, far exceeding the share of payment-oriented tokens.

In Japan, AI token trading made up less than one percent of yen-denominated activity, highlighting Korea's outlier status. The report also noted that Worldcoin led AI token volumes, followed by Sahara AI, Virtuals Protocol, Bio Protocol and NEAR Protocol. Looking ahead, a pending 22 percent crypto tax and broader corporate access could shift market dynamics toward greater institutional participation.