South Korean crypto exchanges recorded a record trading volume following the implementation of martial law. This is due to political instability.
Growth of trading volumes amidst political events
According to CoinMarketCap, the spot trading volume on the five largest South Korean crypto exchanges - Upbit, Bithumb, Coinone, Korbit, and Gopax - reached $34.2 billion over the past 24 hours. The previous record of $18 billion was surpassed due to the martial law implementation and subsequent trading surge.
Crypto market analysis
Upbit contributed the largest share of the spot trading volume at $27.25 billion, followed by Bithumb at $6.14 billion, Coinone at $531 million, Korbit at $192 million, and Gopax with nearly $9 million. This spike in activity led to significant price fluctuations for major cryptocurrencies such as Bitcoin and Ethereum, as well as altcoins like Ripple, Stellar Lumens, and Solana.
Reasons and implications of martial law
Martial law in South Korea was enacted on December 3 at 23:00 KST. Bans on protests and media control led to mass protests and unrest. The government implemented emergency measures in response to a supposed threat from "North Korea's communist forces." However, many believe it was intended to curb domestic pressure that could lead to President Yoon Suk-yeol's impeachment.
Events in South Korea highlight the role political stability plays in shaping the cryptocurrency market. Emergency decisions can significantly impact trading volumes and asset prices.
