South Korea Plays an Increasing Role in Contributing to Trading Volume in the Crypto Market

Traders in Asia, particularly in South Korea, have played an important role in driving the unexpected increase in trading volume in the digital asset market. CCData’s data reveals a significant increase in market share for South Korean crypto exchanges.

In November, their market share rose to 12.9%, a significant increase from the 5.2% recorded in January. This increase aligns with the overall rise in trading volume observed in the digital asset market during October and November.

South Korean Traders Spark a Wave of Altcoins

Since the beginning of October, the digital asset market has experienced growth, fueled by increasing optimism around the potential approval of U.S. crypto spot ETFs.

Bitcoin has recorded a nearly 40% increase in value over the past month, while Solana and Avalanche have seen even more significant gains.

Analysts at CryptoQuanta, a blockchain data platform originating from South Korea, highlighted that traders in South Korea play a significant role in increasing trading volume for altcoins. Chung Hochan, marketing manager at CryptoQuanta, attributes this trend to the absence of a futures market for small investors in South Korea.

This absence has led small investors in the country to explore other options in the crypto market, particularly with altcoins. Increased interest has contributed to a significant rise in the altcoin market compared to other investment assets.

The South Korean Crypto Community is Growing

South Korea has gained recognition for its robust blockchain and crypto community, with the most notable example being the infamous Terraform Labs’ Do Kwon, the mind behind the algorithmic stablecoin TerraUSD.

However, the Korean crypto community faced obstacles following Terra’s collapse in May 2022. Despite this, many crypto companies view South Korea as a significant opportunity, especially amid increasing regulatory challenges in the U.S.