The digital asset market has witnessed a remarkable surge in recent months, with South Korea emerging as a pivotal player. This development is backed by data indicating a significant rise in the market share of South Korean-based exchanges. In November, they reached 12.9%—more than double from January’s 5.2%. This growth is in sync with the overall increase in trading volumes in the digital asset sector during the latter part of the year.
The Surge of Digital Assets
The digital asset market began gaining momentum in early October, particularly in South Korea. This upswing was fueled by positive sentiments around the potential approval of U.S. exchange-traded funds (ETFs) holding digital assets. Leading the charge, Bitcoin’s value soared by nearly 40% in just one month. Altcoins, such as Solana and Avalanche, saw even more dramatic increases, underlining the diverse nature of the market’s growth.
“South Korean exchanges have played a part in the recent uptick in trading activity on centralized exchanges,” said CCData communications manager Jamie Sly. He also states that Upbit represents most of the volume in the East Asian country.
South Korea’s Unique Role in Altcoin Trading
CryptoQuant, a blockchain data firm, sheds light on the significant role played by South Korean traders in this escalation, especially in altcoin trading. Chung Hochan, the Head of Marketing at CryptoQuant, links this trend to the lack of a futures market for retail investors in the country.
This gap has led these investors to seek high leverage opportunities in the crypto market, particularly with altcoins, contributing to the altcoin market’s significant expansion.
The Robust Blockchain and Crypto Community of South Korea
South Korea’s blockchain and cryptocurrency community is robust and influential. It features notable figures like Do Kwon, co-founder of Terraform Labs. He is also the creator of the TerraUSD algorithmic stablecoin.
Despite facing challenges, such as the collapse of Terra in May 2022, South Korea remains a lucrative market for many firms. This interest persists even amidst increasing regulatory hurdles in the United States.
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