Originally published on: September 18, 2024
A recent Chainalysis report reveals a significant surge in South Korea’s cryptocurrency market, attributed to the growing Korea Premium Index. This unique index measures the price disparity of digital assets like Bitcoin and altcoins between South Korean exchanges and global markets.
The report sheds light on local demand, institutional trading activities, and particular market conditions driving crypto prices on South Korean platforms above global averages. The Korea Premium Index spike indicates that South Korean traders are willing to pay higher-than-average prices for cryptocurrencies, especially during market uncertainties.
Institutional investors play a crucial role in fueling the Korea Premium Index by conducting large-scale transactions, subsequently increasing the premium on local exchanges. These investors actively engage in arbitrage opportunities, buying crypto at lower prices from global markets to sell on South Korean platforms for profit.
Interestingly, a Financial Supervisory Service (FSS) report revealed that employees of Dunamu, the operator of Upbit cryptocurrency exchange, earn significantly higher salaries compared to employees of major banks in South Korea. This data highlights the lucrative nature of the crypto industry in the country.
In summary, the Chainalysis report underscores the rapid growth of South Korea’s crypto market, driven by the escalating Korea Premium Index and the active participation of institutional investors. With this momentum, South Korea is set to further solidify its position in the global cryptocurrency landscape.
