South Korea’s Crypto Market Surges with Altcoin Dominance

• South Korean investors have a strong preference for altcoins and local tokens in their crypto portfolios.
• South Korea now boasts 6 million crypto investors, comprising 10% of its population.

South Korea has solidified its position as a crypto trading hotspot, with local exchanges surpassing global competitors in trading volume. A recent report from DeSpread Research sheds light on the country’s crypto passion, showcasing a strong preference for altcoins and local tokens among Korean investors.

According to the report, the number of cryptocurrency investors in South Korea has surged to approximately 6 million, equivalent to a remarkable 10% of the entire population. The report derives this statistic from a survey conducted by the Korea Financial Intelligence Unit (KoFIU). 

Altcoin’s Dominance in South Korea

What sets South Korea apart in the global crypto landscape is the dominance of centralized exchanges. The report notes that a significant majority of Korean investors are actively involved in investment activities concentrated around these centralized platforms. This phenomenon has had considerable influence on centralized exchanges within the Korean crypto market.

In contrast to the global trend of declining trading volumes on centralized exchanges since March, local exchanges in South Korea have defied expectations. Leading the pack is Upbit, the nation’s largest exchange, which has consistently outperformed market leader Binance in terms of trading volume growth.

While Binance exhibited relatively stable trading volumes in July compared to the previous month, the four major Korean exchanges experienced an explosive reaction to developments related to Ripple. Trading volume on these exchanges, which collectively recorded $27 billion in June, skyrocketed to $37 billion in July, marking a staggering 37% increase in just one month. 

In Upbit’s user base, most individual investors prefer altcoins that promise big profits, even though they come with higher risks. This is a major reason why altcoin trading is so popular in the Korean crypto market.

One key factor contributing to this remarkable feat was the 80% surge in XRP’s price and trading volume, triggered by a favorable ruling in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).