Crypto Traders Flock to Semiconductors as Memecoin Volumes Plummet

Crypto-native traders are shifting their capital out of memecoins and into AI and semiconductor equities. In South Korea, trading volumes on Upbit and Bithumb plummeted nearly 80% year-over-year to $1.8B in daily volume by November 2025.

However, across the aisle to equities, the KOSPI index climbed more than 70% year-to-date through late 2025, driven by semiconductor heavyweights Samsung Electronics and SK hynix. Korean retail brokerage accounts swelled from 86.57 million to 95.33 million by the end of October 2025.

The trend isn't limited to Korea. In the US, the SOX semiconductor index surged 170% over the prior year through mid-2026, while Bitcoin dropped approximately 40%. The influx of crypto-native capital into semiconductor stocks introduces a familiar pattern: fast money chasing momentum, amplifying moves in both directions.

For traders who remain in crypto, thinner order books and more violent price swings on lower volume are expected if platforms like Upbit and Bithumb continue hemorrhaging activity. This could lead to a market increasingly dominated by bots and institutional desks rather than retail.