Upbit: Altcoins Contribute to 87% of Trading Volume
A recent comparison of trading volumes between American and Korean cryptocurrency exchanges reveals that altcoins make up a significant portion of the total trading volume on Upbit, the largest Korean exchange. CryptoQuant founder and CEO Ki Young Ju shared this data on Twitter.
Understanding Trading Volume
Trading volume refers to the total amount of a specific cryptocurrency involved in trading activities on a particular platform or group of platforms. High trading volume indicates strong interest from users, while low trading volume suggests lack of investor interest.
Altcoin Dominance on Upbit
A chart provided by Ki Young Ju shows that altcoins contribute the largest share of trading volume on Coinbase, the largest American exchange. However, on Upbit, altcoins account for $34.2 billion in volume, which is equivalent to 87% of the total volume on the exchange.
Possible Reasons for Altcoin Dominance
This stark difference in behavior may be attributed to the type of investors using these platforms. Korean exchanges like Upbit primarily cater to retail investors due to regulations prohibiting institutional investors and foreign users. In contrast, Coinbase is known to attract both retail and institutional investors.
Korean Exchanges vs Binance
When comparing the trading volume of Korean exchanges with Binance, it is evident that the total volume on Korean platforms accounts for around 31% of Binance’s volume. This indicates that altcoin-dominant Korean exchanges have a 12% global influence.
BNB Price Surge
BNB, the largest altcoin in the market, has experienced a 4% price increase in the past 24 hours, reaching $316.
Hot Take: Altcoins Thrive on Upbit, Reflecting Korean Investor Interest
The data provided by CryptoQuant highlights the strong presence of altcoins on Upbit, with 87% of the trading volume attributed to these digital assets. This suggests that Korean investors have a greater interest in altcoins compared to their American counterparts. The regulations in Korea, which prohibit institutional investors and foreign users, likely contribute to this trend. As altcoins continue to thrive on Upbit, their influence in the global market becomes more apparent.
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