By Hassan Mehmood (Saudi Arabia)
The virtual currency investors from South Korea are among the top cryptocurrency investors. On this account, the trading volumes in the local virtual currency trading platforms often exceed the international ratio.
Crypto Investors in South Korea Reach 6 Million
A recent report published by DeSpread Research has indicated that the total quantity of cryptocurrency investors in the region has reached 6 million accounting for 10% of the entire population.
On the other hand, the Korea Financial Intelligence Unit (KoFIU) has also published a new survey that indicates that the majority of investors from the Asian nation use centralized exchanges to trade and access virtual currencies.
Meanwhile, the trading volume on cryptocurrency exchanges has continued to decline since March with Bitcoin prices continuing to trade sideways. Local exchange platforms such as Upbit hold the lion’s share of the market with a trading volume rivaling international exchanges like Binance in July.
One of the main reasons for the accelerated virtual currency trade volume in South Korea is the positive price movement in XRP following the favorable ruling of Ripple’s legal battle against the Securities and Exchange Commission.
Korean Crypto Community Celebrates XRP Relisting
Cryptocurrency investors in South Korea invested heavily in the XRP token following the conclusion of the Ripple Labs lawsuit. On this front, 4 major cryptocurrency exchanges in the country recorded an aggregate trading volume of $27 billion in the month of June this year. The number indicated a 37% increase in comparison to June according to DeSpread report.
Also read:At the same time, traders from South Korea invested heavily in altcoins rather than top 10 cryptocurrencies. The data projections issued by Upbit exchange reveal massive inflows in altcoins citing high profit-potential and bigger risk appetite.
The report retains it as one of the main reasons for the higher ratio of altcoin trading among South Korean investors. On the other hand, major tokens such as Bitcoin, Ethereum, and Polygon continue to gain massive traction among international investors.
According to crypto analysts, the contrast between the trading tendencies among Upbit and international virtual currency traders indicates the difference in investor temperament from the Asian region.
South Korean Crypto Users Prefer Local Exchanges
The investors hailing from South Korea also opted for different crypto trading platforms such as Upbit and Tron network. The Tron network accounts for the majority share of trading volume on account of its economic transaction fees.
Recently, the trading volume records from the South Korean crypto trading platform have indicated a considerable recovery in comparison to previous months. However, most investors from the region store their cryptocurrency holdings at foreign exchanges to store their virtual currency reserves.
The fact has been confirmed from the comparison of national taxation services reports showing that South Korean investors own around $99 billion in virtual currencies held in foreign cryptocurrency trading platforms.
XRP is the fifth largest cryptocurrency by market cap on the international crypto leaderboard. CoinDesk data indicates that the token issuer gained 6.5% with a new daily ATH. A few days ago, the SEC dismissed allegations brought against CEO Brad Garlinghouse and co-founder Chris Larson.
Data projections from Coinalyze indicate that cumulative volume delta (CVD) in spot trading platforms increased for XRP in direct proportion to its price movement. CVD rise signifies more capital inflows. The token has continued to trade with a strong support and resistance range indicating consolidation.
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