As a crypto investor with some experience in the South Korean market, I’m thrilled to see the incredible growth and milestones achieved by the sector in the latter half of 2023. The surge in market capitalization from licensed exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax is a testament to the increasing interest and trust in digital assets in the country.
As a crypto investor, I’ve noticed an impressive growth spurt in the South Korean cryptocurrency market over the past year. Reaching a staggering $32.4 billion mark, it has set a new record height. This surge can be attributed to the escalating fascination with the digital asset sector, most notably Bitcoin (BTC), which soared to hit an astounding $73,000 in March. After a two-year downturn, Bitcoin bounced back strongly.
As a researcher studying the cryptocurrency market, I’ve observed an intriguing trend. In April, the value of the crypto asset dipped below $57,000, only to rebound and reach $66,000 by present day. Surprisingly, this price fluctuation did not deter investors from engaging with the emerging economy. Instead, it seemed to spark renewed interest, demonstrating a strong commitment and belief in the long-term potential of this dynamic market.
South Korean Crypto Market Hits New Milestone
Based on recent reports from annual surveys, the South Korean virtual asset market experienced a remarkable increase in market capitalization during the second half of 2023, reaching approximately 43.6 trillion won or equivalent to $32.4 billion.
These exchanges, which include Upbit, Bithumb, Coinone, Korbit, and Gopax, were the sole contributors to this chart’s data in the given country during the second half of 2023. Remarkably, their combined market capitalization experienced a significant surge, reaching $11.2 billion – a 53% increase compared to the initial six months of the year.
On May 16, the South Korean Financial Intelligence Unit (KoFIU), which is part of the Financial Services Commission, disclosed the results of a survey they conducted. Information was gathered from 22 local cryptocurrency exchanges and 7 wallet and custodial service providers based in South Korea for this study.
Last year from July to December, there was significant growth in the crypto industry of the country, as indicated by a study. This surge in interest attracted traders seeking new opportunities within the market. Consequently, the surveyed cryptocurrency exchanges reported an uptick in trading volumes, daily transactions, and various aspects of their business operations.
According to KoFIU’s statement, key metrics such as trading volume, market capitalization, operating income of cryptocurrency exchanges, and deposits in Korean won experienced significant growth during the second half of 2023. This surge was primarily driven by the upward trend in crypto prices and the restoration of investor confidence. The user base for crypto trading also bounced back from the first half of the year.
Daily Trading Volume
As a crypto investor looking back at the second half of 2023, I’m thrilled to note that the daily trading volume for domestic virtual assets surpassed an impressive 3.6 trillion won ($2.6 billion). This represents a significant jump of 24% compared to the first half of the year.
In the cryptocurrency market using the Korean Won (KRW), the daily trading volume averaged $2.1 billion but then climbed up by 24%, reaching approximately $2.6 billion. However, this market growth was overshadowed by a significant drop of 44% in coin values, bringing the total market size down to around $30,000.
As a researcher studying the dynamic world of cryptocurrencies, I’ve come across an intriguing aspect referred to as the “coin market.” This term signifies transactions where traders exchange their digital asset holdings for other types of cryptocurrencies without using traditional national currencies such as dollars or Korean won in the process. Essentially, it represents peer-to-peer exchanges within the crypto sphere.
Individual Investors Lead Surge in Registered Users
Local crypto exchanges in South Korea saw significant growth in user base before the global cryptocurrency surge in early 2024. A survey revealed that the number of active users on registered exchanges in the country increased by approximately 390,000 to reach a total of 6.45 million by the end of 2023.
A significant number of new users, amounting to more than 10% of the country’s population, were primarily fueled by individual investors actively trading cryptocurrencies such as Bitcoin (BTC), Ethereum (Ether), and various other altcoins.
As a crypto investor, I’ve noticed that an overwhelming majority of the community making trades on this platform falls into the category of experienced investors. In fact, this group accounted for a whopping 99% of the total active registered users. Among them, a significant portion, approximately 60%, belong to the age demographic of individuals in their 30s and 40s.
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2024-05-16 13:30