Crypto Boom in South Korea: 7.78 Million Investors by Mid-2024
The cryptocurrency market in South Korea continues to grow at an exponential rate. By mid-2024, the total amount of investors invested in digital assets reached a record high, reaching 7.78 million, up from 21% compared to the latter half of 2023. This should put in a wider context of renewed interest and financial returns associated with Bitcoin and other leading virtual currencies.
Daily Trading Volume and Market Cap Grow Significantly
The Financial Intelligence Unit noted a staggering 67% surge in average daily trading volumes, with transactions jumping from 3.6 trillion won to 6 trillion won. The transactions jumped from 3.6 trillion won to 6 trillion won from the previous period. Further, South Korea’s crypto market cap reached 55.3 trillion won-up 27% and showing rampant growth across the board.
Reasons Behind the Rise in Crypto Fever
Interest in digital assets abruptly started to surge when Bitcoin’s value broke above the 100 million won threshold, or $75,000. Actually, this growth does come in tandem with pro-crypto policies gaining momentum, especially in the U.S., where speculations about a Bitcoin spot ETF approval and a pro-crypto stance from former President Donald Trump are stirring optimism.
Demographic Breakdown: Men in Their 30s Dominate
The main segment of crypto investors from South Korea is the men in their 30s, amounting to 1.58 million participants, while men in their 40s come close at 1.5 million. Men constitute 68% of the investors, while the remaining 32% are women. But here is a stunner: as much as 67% of the investors have assets below 500,000 won-a sure sign that there is conservative investment across the board.
Popular Cryptocurrencies: Bitcoin Leads, Followed by Ethereum and Ripple
It becomes apparent that Bitcoin is the most-held asset among South Korean investors at 37.2%, followed closely by Ethereum at 11.1%, then Ripple at 10.6%, while smaller exposures are to Dogecoin and Ethereum Classic among others. However, the maximum drawdown from peak to trough of this market reached 70% – an absolute volatility measure that considerably outpaces traditional market barometers.
Young Koreans Favor Crypto Over State Pension Plans
A recent survey showed that over 75% of young South Koreans, from 20-39 years, distrust the national pension system. Most of them invest their money in stocks and cryptocurrencies instead. More than half of the respondents took control and are directly investing in digital assets for retirement.
Crypto and Politics: Candidates with Crypto Holdings
Notably, nearly 7% of the election candidates in South Korea declared crypto holdings, a surefire marker of how crypto diffusion is happening at all levels of society. With better regulatory clarity and increased adoption rates, this may prove to be an important frontier in the days, weeks, months, and years that come next.
