South Korea has emerged as a global leader in cryptocurrency adoption, with more than 15.59 million citizens holding digital assets, representing over 30% of the population.
Surging Investments Following Global Events
Data from the Bank of Korea (BOK) reveals a sharp increase in cryptocurrency investments, especially following key global events like the U.S. presidential election. External economic and political factors have influenced investor sentiment. By the end of November, 15.59 million South Koreans held accounts with the country's top exchanges including Upbit, Bithumb, Coinone, Korbit, and GOPAX, marking an increase from October.
Market Expansion and Valuation Growth
The cryptocurrency market in South Korea has experienced unprecedented growth in recent months. Bitcoin prices surged from 105 million won in October to 135.8 million won by the end of November, leading to a substantial rise in the total market valuation. In November, the total value of digital assets held by South Korean investors reached 102.6 trillion won, nearly double October's valuation. This growth was accompanied by an increase in average holdings per investor.
Daily Trading Volume Rivals Stock Market
One of the most striking developments is the rapid growth in cryptocurrency trading volumes, which now rival traditional stock markets. In November, the average daily trading volume of domestic cryptocurrencies reached 14.9 trillion won, nearly equivalent to the trading volumes of South Korea's stock indices KOSPI and KOSDAQ. Deposits on cryptocurrency exchanges have also doubled during this period.
While the rapid growth of cryptocurrency adoption is promising, regulatory and stability challenges remain. The lack of a unified regulatory framework makes the market vulnerable to external shocks.
