Retail crypto trading in South Korea hit a staggering $18 billion in the last 24 hours, surpassing the country’s stock market by 22%, according to 10x Research.
The surge marks the second-highest trading volume for the year, driven by a frenzy for high-momentum altcoins, as detailed in a Dec. 2 report by 10x Research founder Markus Thielen.
South Korea’s Retail Daily Trading Volume Reaches $18 Billion
Ripple’s XRP led the charge with a trading volume exceeding $6.3 billion, followed by Dogecoin at $1.6 billion and Stellar at $1.3 billion. Ethereum Name Service (ENS) and Hedera (HBAR) also contributed significantly, with trading volumes of $900 million and $800 million, respectively.
Thielen noted that these tokens, propelled largely by retail traders, highlight a momentum-driven trading pattern dominating the market.
Rising Interest in “Dino Coins”
Tokens like XRP, ENS, and HBAR, often called “dino coins” by crypto enthusiasts due to their longstanding presence in the market, have recently experienced massive price gains.
Over the past week, XRP surged 90%, ENS climbed 81%, and HBAR skyrocketed by 164%. These performances outpaced most other crypto assets, signalling a revival of interest in these older tokens.
Thielen emphasised that Bitcoin’s funding rate, an important indicator of perpetual futures trading activity, remained relatively subdued at an annualised rate of 15%. This, coupled with heightened altcoin trading volumes, strongly suggests the onset of an “altseason,” a period when alternative cryptocurrencies significantly outperform Bitcoin in terms of price and trading activity.
Government Support and Global Trends
The South Korean government’s evolving stance on cryptocurrencies is also fueling the market boom. While historically cautious, authorities have recently shown greater openness to the sector, aligning with a global trend of regulatory clarity and acceptance led by countries like the United States.
This shift is creating an environment conducive to the growth of smaller, innovative tokens and reinforcing South Korea’s reputation as a significant player in the global crypto ecosystem.
Altcoins Dominate the Spotlight
The surge in trading volumes is not merely a local phenomenon but reflects a broader global interest in altcoins. Ripple’s XRP, often viewed as a benchmark for retail interest, has seen consistent gains, particularly in South Korea, where it frequently dominates trading charts.
Similarly, the rise of ENS and HBAR highlights the diversification of retail interest beyond mainstream assets like Bitcoin and Ethereum.
These high-momentum trades, as Thielen observed, underline the speculative nature of retail trading. Traders appear to be capitalizing on short-term trends, creating a feedback loop that further amplifies market activity.
Outlook for the Crypto Market
As retail enthusiasm continues to drive the market, analysts believe the crypto sector is poised for further growth. With increased trading activity and a favourable regulatory environment, South Korea is cementing its position as a global hub for cryptocurrency innovation.
The ongoing altseason could signal a broader shift in market dynamics, as retail traders increasingly embrace diverse investment opportunities. While the future remains unpredictable, the current momentum underscores a transformative period for the crypto market, with South Korea at the forefront of this digital revolution.