In a recent week, South Korea marked a significant event in its financial sector as local cryptocurrency exchanges experienced a surge in trading volume that surpassed that of the nation’s stock exchange. This shift indicates a growing enthusiasm among South Korean investors for digital currencies. On March 10th, cryptocurrency exchanges based in South Korea reported a trading volume of 12 trillion won, overtaking the 11.47 trillion won traded on the stock exchange.
Rising Crypto Trading Frenzy in South Korea
The spike in trading volume comes amid Bitcoin‘s price rise, which has sparked a wave of increased activity in the cryptocurrency markets. Notably, on March 10th, the cumulative trading volume across leading South Korean crypto exchanges reached 11.8 trillion won, with major platforms like Upbit, Bithumb, Coinone, and Gopax contributing significantly to this trading peak.
Analysts observe that South Korean investors are displaying a heightened appetite for risk, with a keen interest in high-stakes, high-return investments. This trend is particularly evident as altcoins gain favor over established cryptocurrencies like Bitcoin and Ethereum, showcasing a shift in South Korean investment trends.
Record-High Kimchi Premium Highlights Investment Zeal
Despite disparities in pricing on local and global exchanges, Bitcoin and Ethereum continue to see strong demand in South Korea. The ‘kimchi premium,’ which denotes the price gap of Bitcoin on domestic versus international platforms, has hit its highest stance since the previous year, underscoring the powerful demand that persists among South Korean buyers.
Bradley Park, research director at CryptoQuant, points to Upbit’s soaring trading volume since March as a clear sign of robust and sustained interest in cryptocurrencies within the South Korean market. The kimchi premium not only presents an arbitrage opportunity but also reflects the premium South Korean investors are prepared to pay to secure their share of Bitcoin.