According to a recent report According to market strategy consultancy Web3 DeSpread’s report, the Korean crypto space will be populated by approximately 6 million investors, representing more than 10% of the entire population.
According to the report, centralized exchanges (CEX) seem to be the choice for most of these enthusiasts. This massive influx of investors indicates growing confidence and interest in cryptocurrencies, making South Korea a crucial player in global digital finance.
Dominance of Korean Cryptocentralized Exchanges
Against the backdrop of a global drop in cryptocurrency trading volumes, the Korean Centralized Exchanges (CEX) tell a different story. Four key players, Upbit, Bithumb, Coinone and Korbit, appear to be driving this momentum and together account for 10% of global trade volume.
This feat puts them ahead of Coinbase, the second largest exchange globally, in trading volumes. Upbit, in particular, leads the pack, recording a trading volume of $36 billion in February alone and securing 80% of the Korean market.
After Upbit is Bithumb, which captures between 15% and 20%, while Coinone and Korbit follow with market shares of 3-5% and less than 1%, respectively.
A Dive into Altcoin Preferences
Investment trends often serve as a window into investor psychology. A closer look at Korean CEXs reveals a distinct penchant for altcoins. As revealed in the report, tThe investment space in the South Korean market contrasts sharply with platforms like Coinbase, which are predominantly influenced by institutional investors. The report noted:
Unlike Upbit, where individual investors dominate, Coinbase’s trading volume is driven by institutional investors.
Citing more Coinbase shareholder in the second quarter letter, DeSpread noted:
Institutional investors account for approximately 85% of Coinbase’s total trading volume. They tend to pursue portfolio stability, which is why trading in btc and eth, which have the largest market capitalization among cryptocurrencies, occupies a relatively high proportion.
Data pulled from market reports further underlines this trend, highlighting Loom Network ($LOOM) with a trading dominance of 62%.
It is closely followed by eCash ($XEC) with 55% and Flow ($FLOW) with 43%. Other notable mentions include Stacks ($STX) and bitcoin SV ($BSV), which also enjoy considerable attention with trading rates of 37% and 34%, respectively.
In particular, although bitcoin is the cryptocurrency with the largest market capitalization, it is clear that the asset is not interesting for South Korean investors. Regardless, bitcoin has continued to thrive, posting almost 20% last week.
However, bitcoin has seen a huge pullback from its previous gains that led the asset to trade as high as $35,000. At the time of writing, bitcoin is trading at $35,027 without any significant movement in the last 24 hours.
Featured image from Unsplash, chart from TradingView
