The South Korean crypto market is experiencing unprecedented growth with a significant increase in both the number of users and trading volume. Recent data from the Financial Intelligence Unit (FIU) shows that the number of crypto users increased to 7.78 million in the first quarter of 2024 – a significant jump from the 6.45 million users in the third quarter of 2023. This shows the strong growth and increased confidence in digital assets among South Korean investors.
Trading volume increased by 67%
The FIU report, Virtual Asset Business Survey, also notes that trading volume increased by a whopping 67 percent over the same period, from $3.6 trillion to $6 trillion. South Korea’s cryptocurrency market capitalization also recorded a new high, reaching 53 trillion won. Analysts predict this trend will continue, with expectations that the South Korean crypto market will pass the 100 trillion won mark in the coming years.
Bitcoin remains the undisputed favorite, followed by Ethereum and Ripple. Memecoins, such as Dogecoin, also enjoy considerable popularity in the country. Bitcoin remains the most adopted cryptocurrency worldwide with a market share of over 60 percent.
The growing adoption of Bitcoin and other cryptocurrencies in South Korea is further strengthened by the entry of traditional financial institutions and large asset managers. The recent rise in Bitcoin’s price, which rose to a record $72,000, contributes to confidence in the market.
Finally, blockchain analytics firm Chainalysis notes that policy changes and market conditions are impacting the “Kimchi Premium,” a phenomenon in which the price of Bitcoin in South Korea is above the global rate. This premium peaked in March when Bitcoin was at an all-time high, which is a strong indicator of the crypto fever in South Korea.
Source: https://newsbit.nl/explosieve-groei-cryptomarkt-in-zuid-korea-gebruikersaantallen-en-handelsvolume-schieten-omhoog/
