Originally published on: October 31, 2024
The crypto investor community in South Korea is rapidly expanding, leading to a significant increase in profitability for the country’s digital asset exchanges.
In the first half of 2024, the number of crypto investors in South Korea reached 7.78 million, showing a substantial 21% growth compared to the previous half of 2023, where there were 6.45 million digital asset investors in the country.
The surge in investors has resulted in the combined operating profits of the top 21 local centralized exchanges (CEXs) exceeding 5,900 billion won, equivalent to $4.2 billion. This marks an impressive year-on-year increase of 106%, as reported by the Financial Services Commission of South Korea and shared in local media outlets.
The growing presence of retail investors is a positive sign for the market, as their influx of capital is expected to further drive the value of leading cryptocurrencies like Bitcoin (BTC) and Ether (ETH) up.
Bitcoin has been on the rise and came close to hitting an all-time high in anticipation of the US presidential elections. On Oct. 29, Bitcoin reached just $200 shy of its record high, surpassing $73,600, the highest level since March 2024.
Despite the bullish momentum, some analysts suggest that Bitcoin’s current price surge could be a temporary “Trump hedge” without the necessary macroeconomic fundamentals to sustain a new peak.
The majority of crypto investors in South Korea, accounting for over 68% of the total, are male. Among them, males over 30 represent the largest subset, comprising 5.28 million investors in the country. In contrast, there are only 850,000 male investors over the age of 50 in South Korea.
While the average crypto holdings of South Korean investors remain relatively modest, with 67% owning less than $362 worth of digital assets, there is a notable 10% who hold more substantial amounts, exceeding $7,254 in crypto investments.
Among the preferred digital assets held by South Korean investors, Bitcoin takes the top spot with over 37% of the total holdings, followed by Ether at 11%, XRP token at 10.6%, Dogecoin at 2.8%, and Ethereum Classic at 2.7%.
The surge in crypto investments in South Korea reflects a broader trend of growing interest in digital assets globally. As the market continues to evolve, the country’s CEXs are poised to capitalize on the increasing investor base and drive further profitability in the coming years.
