South Korea has seen a significant increase in its crypto investors base as a young crowd’s peeking interest combined with the rise in Bitcoin price has helped the country’s interest in digital currencies.
According to official reports, in South Korea, there were 7.78 million cryptocurrency investors in the first half of 2024, up 21% from the second half of 2023.
The average daily volume of trading rose to $64.35 billion from $2.61 billion. The profits of 21 local CEXs reached $428 million, a 106% year-over-year increase.
Additionally, during that same time period, the average daily transaction volume also increased by 2.4 trillion won (67%) from 3.6 trillion won to 6 trillion won. Also, virtual assets’ market capitalization grew by 27% to 55.3 trillion won. At 590 billion won, the operating profit of 21 domestic virtual asset companies also grew by 106% from the second half of the previous year.
Why is Crypto Trading Popular In South Korea?
The rise in investors base in South Korea comes on the back of two major factors. The first being the rise of crypto-hype among young generation.
The report highlights that the largest percentage of virtual asset investors were men in their 30s, according to the detailed status. 1.58 million male investors were in their 30s, 1.5 million were in their 40s, 1.08 million were in their 20s and under, and 850,000 were in their 50s. Male investors made up 5.29 million, or 68% of the total.
The second main reason for the rise in crypto-base in South Korea lies in the rise of Bitcoin prices. Since the price of Bitcoin recently surpassed 100 million won, the market for virtual assets is once again heating up. Bitcoin prices have been on a rise since the start of 2024.
The commencement of Bitcoin ETF trading alongside the overall halving has resulted in a strong customer response for the OG-cryptocurrency.
South Korea Crypto Growth: What To Expect In 2025?
Statista in its report highlights that by the end of 2024, the South Korean cryptocurrency market is expected to generate US$855.2 million in revenue. It is anticipated to grow at a rate of 3.72% per year (CAGR 2024-2025), with a total revenue of US$823.4 million by 2025.
By the end of 2025, it is expected that there will be 12.41 million cryptocurrency users in South Korea. Additionally 2024 will see the user penetration rate ranging around 23.87%, and by 2025, it is projected to rise to 24.01%.
The Virtual Asset User Protection Act of South Korea became operative in July 2024. It establishes rules for issuing and implementing orders to shield traders from deceptive and predatory trading tactics. For South Korean investors, this act and the previous amendments to previous acts offer greater protection and transparency.