Traders in Asia, especially in South Korea, have emerged as key drivers behind the recent rally in crypto market over the past two months.
Data compiled by CCData reveals a substantial increase in the market share of South Korean-based exchanges, reaching 12.9% in November compared to 5.2% in January.
This uptick coincides with a general rise in overall trading volume throughout October and November.
South Koreans Exchange Witness Massive Surge in Volume
According to CCData communications manager Jamie Sly, South Korean exchanges, notably Upbit, have played a crucial role in the recent surge in trading activity on centralized exchanges in the East Asian country.
The surge in the digital asset market, commencing from early October, is buoyed by growing optimism surrounding the potential authorization of U.S. exchange-traded funds to hold digital assets.
Bitcoin has notably rallied almost 40% in the past month, with smaller tokens like Solana and Avalanche experiencing even more substantial surges.
South Korean Retail Investors Turn to Altcoins
Analysts from the South Korea-founded blockchain data platform CryptoQuant point out that traders in South Korea are particularly responsible for the escalating trading volume of altcoins.
CryptoQuant’s Head of Marketing, Chung Hochan, attributes this phenomenon to the absence of a futures market for retail investors in South Korea.
Retail investors in the country are finding substantial leverage opportunities in the crypto market, especially with altcoins, contributing to the notable expansion of the altcoin market compared to other investment assets.
Despite the setback faced by the South Korean crypto community after the collapse of Terra in May 2022, the country remains a significant opportunity for many crypto firms, especially as regulatory pushback intensifies in the United States.
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