South Korea has become a major hub for cryptocurrency investment, with over six million crypto investors representing more than 10% of the country’s population. This has had a significant impact on the financial landscape and highlighted the dominance of centralized exchanges in the Korean crypto market.
According to a survey conducted by the Korea Financial Intelligence Unit (KoFIU), the number of crypto investors in South Korea is projected to reach approximately six million by the first half of 2024. The majority of these investors primarily engage in investment activities centered around centralized exchanges.
Despite a global decrease in trading volume, South Korean cryptocurrency exchanges have shown resilience. Bitcoin has maintained a relatively stable range of $27K to $28K for six months, leading to decreased market volatility. Korean exchanges experienced a dip in trading volume in May but rebounded in July, surpassing Binance.
Upbit is the dominant player in the Korean crypto market, accounting for approximately 80% of the market share. Bithumb is the second-largest exchange with a market share of 15% to 20%, while Coinone and Korbit have relatively limited market shares.
Korean investors have distinct preferences when it comes to cryptocurrencies. Loom Network (LOOM) recorded the highest trading volume among Korean investors, followed by eCash (XEC) and Flow (FLOW). This indicates a preference for altcoins over mainstream coins among Korean investors.
While Upbit’s trading volumes for BTC and ETH make up a small proportion of the total, Coinbase holds a significant share of volume in these cryptocurrencies. This suggests differing investment strategies across markets, with Upbit’s investors interested in high-profit potential altcoins and Coinbase’s institutional investors prioritizing portfolio stability.
Overall, South Korea’s crypto investment landscape has grown rapidly, with centralized exchanges playing a dominant role and Korean investors showing a preference for altcoins with potential for high profits.
Hot Take: The Rise of Cryptocurrency Investment in South Korea
South Korea has emerged as a global hotspot for cryptocurrency investment, with over six million crypto investors representing more than 10% of the country’s population. This surge in crypto investment has reshaped the financial landscape and highlighted the dominance of centralized exchanges in the Korean market. Despite a global decrease in trading volume, Korean exchanges have shown resilience, surpassing major players like Binance and Coinbase. Korean investors have distinct preferences for altcoins, with Loom Network leading the pack. This growing influence of South Korea in the international crypto market is indicative of the country’s increasing importance in the industry.