South Korea's Crypto Scene: 57 Million Visits but Low On-chain Retention

South Korea has emerged as a leading market for crypto engagement, drawing 57 million visits to crypto media in the second quarter. Despite high interest, on-chain retention rates are dismally low, averaging between 1% to 2%. This article examines the dynamics behind these statistics, exploring the stability of audience engagement and the challenges faced by the KAIA blockchain.

Key Takeaways

South Korea accounted for 57 million visits to crypto media in Q2, dominating Asian traffic.
High engagement on crypto media does not equate to retention on-chain, with rates staying between 1-2%.
Loyal readership is driven by direct access to crypto platforms rather than accidental discoveries.
KAIA's on-chain activity peaked in April but dropped significantly by June, illustrating users' lack of ongoing engagement.
Retention is a critical factor in determining the health of crypto ecosystems, and Korean users are selective about their on-chain activities.

Korea drives 57 million Q2 visits but on-chain retention remains 1-2% - 1

A Market with Steady Attention

South Korea's crypto media landscape is remarkably stable. Throughout the second quarter, traffic saw minimal fluctuations: 18.6 million visits in April, nearly 20 million in May, and again 18.6 million in June. This stability indicates that crypto is a well-established interest in Korea, not just a fleeting trend.

Much of this consistent traffic stems from user loyalty; Korean readers intentionally visit the same platforms daily instead of stumbling upon crypto news by chance. This loyalty is particularly evident among leading Korean platforms like Coinpan, CoinReaders, Blockmedia, Bloomingbit, TokenPost, and Coinness, where direct visits constitute a substantial portion of overall traffic.

Korea drives 57 million Q2 visits but on-chain retention remains 1-2% - 2 Image source: Outset PR
Community forums also play a crucial role in driving discovery and discussion, distinguishing Korea's crypto culture from Western markets. Unlike Latin America, which has a concentration of media brands leading traffic, Korea’s landscape relies heavily on traditional community hubs such as FM Korea, DCInside, Namu Wiki, Ruliweb, Ppomppu, Clien, and AntTalk for referrals.

An analysis of 25 Korean crypto outlets revealed a notable pattern: only two—Blockmedia and Coinpan—showed measurable AI-driven traffic in Q2, indicating that discoverability through AI tools is still unevenly distributed.

KAIA’s April Surge and Subsequent Decline

KAIA's on-chain activity presents a stark contrast to the media’s high engagement rates. In April, the platform welcomed over 17 million new users and saw weekly transactions peak at 53 million, making it one of Asia's busiest chains. However, this activity quickly waned; by June, weekly transactions fell to approximately 4.5 million, and new user onboarding slowed.

KAIA's communications during this period reflected these highs and lows. April's messaging focused on campaigns and rewards, while May leaned toward stablecoin integrations and support from exchanges like USDT and Bitget. By June, discussions shifted to long-term projects like RWAs and mini dApps, but on-chain activity had already diminished considerably.

Understanding On-chain Retention

A deeper look into Dune Analytics data reveals why the initial surge in on-chain activity was not sustainable. The user retention rate for those who joined in April dropped from 11.45% in the first month to a mere 1.75% by the third month, indicating that over 98% of users were no longer active within three months.

This pattern was consistent in June as well, where even the more stable user group from May showed a decline in engagement. Outset Data Pulse identifies the lack of on-chain retention as a key gap that disconnects visibility and sustainable growth. High traffic and onboarding figures are not enough to ensure long-term ecosystem viability.

KAIA's retention model reveals the critical importance of ongoing user engagement. It tracks retention across three months to determine whether growth is based on genuine utility or merely temporary incentives—an essential distinction in an environment heavily focused on campaigns.

Korea drives 57 million Q2 visits but on-chain retention remains 1-2% - 3 Image source: Outset PR
Interestingly, trading activity on Korean exchanges such as Upbit and Bithumb saw increases only after the spike in KAIA's activity, suggesting that traders were responding to narratives rather than driving the on-chain boom themselves.

Korea drives 57 million Q2 visits but on-chain retention remains 1-2% - 4 Image source: Outset PR

Conclusion

The data highlights a significant finding: while South Korea is one of the most engaged crypto markets globally, mere interest does not translate into long-term commitment. Users are responsive to engaging narratives and campaigns, but they also exercise caution in their on-chain activities.

For KAIA and other Web3 platforms in Korea, the challenge lies in transforming this impressive but fleeting engagement into sustained on-chain usage. This can be achieved by enhancing the user experience through utility-focused features such as mini dApps and stablecoin payments, while also ensuring seamless transitions between exchanges and on-chain activities.

Platforms demonstrating high engagement, like Coinpan and CoinReaders, may offer stable narratives that can anchor user interest. Additionally, exploiting the potential of AI-driven channels may provide new avenues for reaching a diverse audience in Korea, which is evolving how crypto news is consumed.

Ultimately, the ongoing shifts in crypto engagement across Asia illustrate the need for ecosystems to cultivate lasting connections with their users to secure repeated participation.