A new trading trend has emerged as former token traders explore the Korean stock market. The ability to initiate contracts and trade any asset has allowed crypto traders to pivot away from stagnant or falling coins and tokens.
The former crypto trader moved to the Korea Composite Stock Price Index (KOSPI 200) to grow the newly emerging market in hyperliquid. As of May 5th, 63% Based on Hyperliquid’s trading data, there are two profitable trading positions in the index.
For now, index trading is relatively niche, with open interest of just $121,000. However, with KOSPI breaking a new record, this trend is likely to persist and even expand.
Why are Korean stocks soaring?
South Korean stocks have traded at a discount compared to global assets for years, despite the country’s development. In 2024, the government introduced the Enterprise Value Improvement Program with the aim of ushering in a new bull market.
As a result, KOSPI has gained 31.84% in the past month and over 209% in the past 12 months. The index was also more volatile than Bitcoin ($BTC), has not been an obstacle for crypto traders in the perpetual futures market. Once KOSPI went parabolic, KOSPI was often compared to a speculative token. altcoin.
Value-up programs provide incentives to companies and investors with the aim of raising sluggish stock valuations. South Korea also lowered its dividend tax from 45% to 13-30% in December 2025, increasing the value of domestic stocks.
The stock price decline was not a reflection of the current Korean economy, but rather a vestige of the company’s ownership structure. The value-up program is seen as a transition to unlocking true price discovery in Korean stocks.
KOSPI’s constituent stocks are supported by several strong factors, including continued earnings growth. KOSPI’s P/E ratio remains healthy. 26.41which is comparable to the Nasdaq ratio of 23.90 points and better than the S&P 500 ratio of 30.90 points.
The index is highly reflective of the AI boom, with chipmakers such as SK Hynix and Samsung Electronics accounting for 42% of the index. As a result, KOSPI is one of the assets closest to a pure AI pivot. This index is not a bubble-like valuation, but also promises great value, making it a strong argument for a shift away from cryptocurrencies.
Cryptocurrency traders return to stocks
According to recent HyperLiquid data, stocks and stock indexes are back as among the most actively traded assets, replacing oil futures and precious metals. TradeXYZ’s SP500 index is trading close behind $BTCETH, and HYPE perspective daily amount.
The switch to stocks reflects growing distrust in the cryptocurrency space, even for revenue-generating apps. The risk of hacking and increased uncertainty has led traders to seek other more stable sources of growth.
You can represent any asset on Hyperliquid or any other platform, expanding your investment options. Traders are also looking for undervalued stocks based on currently growing sectors that fit the general AI narrative.
