- Low retail participation impacts crypto trading volume sustainability.
- South Korean trading volumes are significantly low despite past peaks.
- Monetary easing may not sustain rallies without retail influx.
On December 9, Matrixport’s analysis revealed persistently low retail participation in the cryptocurrency market, particularly in South Korea, signaling challenges for trading platforms and anticipated IPOs.
This trend suggests that without increased retail activity, monetary policy changes alone may not boost market sentiment or trading volume significantly.
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Matrixport, a crypto financial services platform founded by Jihan Wu and John Ge, released a recent analysis indicating persistent low retail participation in the cryptocurrency market.
According to Matrixport’s updates on Twitter, without an influx of retail investors, even monetary easing, such as potential Federal Reserve interest rate cuts, may not lead to a sustainable rally. The analysis also notes that South Korean trading volumes remain significantly lower than their historical peaks of December 2023 and 2024, when daily volumes reached billions of dollars.
Jihan Wu, Co-founder, Matrixport: “Without a broader influx of retail investors, even if the Federal Reserve chooses to cut interest rates, monetary policy easing alone will hardly drive a truly sustainable rally.”
South Korean Trading Volumes Fall Behind Historical Highs
Did you know? During past peaks, South Korean crypto trading volumes hit billions daily, unlike the current $1 billion threshold, underscoring Matrixport’s analysis on low retail activity.
Currently, Bitcoin (BTC) has a price of $93,706.28 and dominates the market with a 58.42% share, as reported by CoinMarketCap. Significant shifts in Bitcoin’s price over the last 90 days show a 17.52% decrease. Its daily volume sits at $64.27 billion, with a slight increase of 3.81% in value over 24 hours.
Insights from the Coincu research team suggest that unless retail inflows revive, financial and technological expansion in cryptocurrency will remain limited. Without significant retail activity, the market could continue facing challenges in sustaining price and volume growth, emphasizing Matrixport’s analysis.
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Source: https://coincu.com/markets/matrixport-retail-participation-low/