Originally published on: October 31, 2024
The cryptocurrency craze in South Korea is on a steady rise, driving the profits of the country’s digital asset exchanges to new heights.
With a surge in the number of crypto investors, South Korea now boasts 7.78 million digital asset enthusiasts in the first half of 2024. This marks a significant 21% increase from the previous year, indicating a growing interest in the virtual currency market.
According to the Financial Services Commission, the top 21 local centralized exchanges (CEXs) in South Korea have seen their cumulative operating profits soar to over 5,900 billion won, equivalent to $4.2 billion. This staggering 106% year-on-year increase signals a promising outlook for the cryptocurrency sector in the country.
The influx of retail investors bodes well for the overall market sentiment, as the fresh capital injected into popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH) is expected to drive further price appreciation.
Bitcoin, in particular, has been inching closer to its all-time high in anticipation of the US presidential elections. Recent data shows that Bitcoin reached a peak of over $73,600, coming within $200 of its previous record high. However, some experts caution that the current price surge may be driven by speculative factors rather than sustainable market conditions.
Notably, a significant portion of South Korea’s crypto investors are males over 30, comprising 5.28 million individuals. While the country has a sizeable number of older male investors, with 850,000 above the age of 50, the average allocation to cryptocurrencies remains relatively modest.
The majority of South Korean investors hold less than $362 worth of digital assets in their portfolios, with only 10% managing investments exceeding $7,254. The most popular cryptocurrencies among South Korean investors include Bitcoin, Ether, XRP, Dogecoin, and Ethereum Classic.
As the crypto market continues to evolve, South Korea’s growing community of investors is poised to play a significant role in shaping the future of digital assets in the country.
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