South Korea has solidified its position as a global hub for crypto investment, with a recent survey putting the total number of crypto investors at over six million, more than 10% of the nation’s total population.
A survey conducted by the Korea Financial Intelligence Unit (KoFIU) projects that the number of crypto investors in the country will surpass six million in the first half of 2024. Notably, the majority of these investors actively participate in investment activities facilitated by centralized exchanges, showcasing a distinctive trend in the market.
Despite a global dip in trading volume since March, South Korean cryptocurrency exchanges have exhibited resilience. The market has seen reduced volatility, with Bitcoin maintaining a relatively stable range between $27,000 and $28,000 for six consecutive months. After reaching a peak of $45 billion in February, Korean exchanges experienced a temporary decline to $23 billion in May but swiftly rebounded to $37 billion in July, surpassing even global giant Binance.
These exchanges have consistently maintained trading volumes at around 10% in comparison to Binance and have, at times, surpassed the figures of Coinbase, emphasizing their growing influence internationally.
At the forefront of the Korean crypto market is Upbit, recording its highest trading volume of $36 billion in February and commanding approximately 80% of the market share. Bithumb, the second-largest exchange, maintains a robust position with a market share ranging between 15% and 20%, while the market share of Coinone and Korbit remains relatively limited.
The preferences of Korean investors become evident in their choice of cryptocurrencies, with Loom Network (LOOM) leading the charts with a trading volume ratio of 62%, followed by eCash (XEC) at 55%, and Flow (FLOW) at 43%. Stacks (STX) and Bitcoin SV (BSV) also make an appearance with ratios of 37% and 34%, respectively, indicating a predilection for altcoins over mainstream ones among Korean investors.
While trading volumes for BTC and ETH on Upbit constitute a small proportion of the total, Coinbase, a major U.S. cryptocurrency exchange, holds a substantial share of volume in these cryptocurrencies. This suggests divergent investment strategies across markets, with Upbit’s investors displaying a strong interest in high-profit potential altcoins, while Coinbase’s institutional investors prioritize portfolio stability.
