Originally published on: October 31, 2024
In a remarkable surge, South Korea has seen a significant increase in crypto investors, leading to a substantial rise in profits for the country’s digital asset exchanges.
The number of crypto investors in South Korea soared to 7.78 million in the first half of 2024, marking a 21% increase from the previous year. This surge in investors has propelled the cumulative operating profits of the top 21 local centralized exchanges (CEXs) to an impressive 5,900 billion won, or $4.2 billion, showcasing a remarkable year-on-year increase of 106%.
With more retail investors entering the market, the stage is set for a bullish market trend. The influx of new capital is expected to further drive the price appreciation of leading cryptocurrencies like Bitcoin and Ether.
Speaking of Bitcoin, the digital currency was on the cusp of reaching an all-time high ahead of the US presidential elections. Bitcoin’s price nearly reached $73,600, the highest level since March 2024, just $200 shy of its record high.
While some analysts view the current price action of Bitcoin as a “Trump hedge,” others believe that the fundamental macroeconomic conditions are not conducive to propel the cryptocurrency to new highs.
Of the crypto investors in South Korea, more than 68% are males, with the majority being males over 30 years old. Interestingly, the country has approximately 850,000 male investors above the age of 50.
Despite the growing number of investors, the average crypto allocation in South Korea remains relatively modest. A majority of investors (67%) hold less than $362 worth of digital assets in their portfolios, while only 10% have investments exceeding $7,254.
When it comes to asset allocation, Bitcoin holds the lion’s share, with over 37% of South Korean investors’ portfolios dedicated to the cryptocurrency. Ether, XRP, Dogecoin, and Ethereum Classic also feature prominently in their investment choices.
The crypto market in South Korea continues to show signs of robust growth, with increasing investor interest and expanding profits for digital asset exchanges. With the crypto frenzy showing no signs of slowing down, the country’s digital landscape is set for further evolution and expansion.
