South Korea has emerged as a global leader in cryptocurrency adoption with over 15.59 million citizens holding digital assets.
Surging Investments Following Global Events
Data from the Bank of Korea reveals a sharp increase in cryptocurrency investments, particularly following key global events such as the U.S. presidential election. External economic and political factors have played a role in shaping investor sentiment. By the end of November, 15.59 million South Koreans held accounts across the country’s top five exchanges, representing an increase of 610,000 new investors from October.
Market Expansion and Valuation Growth
The cryptocurrency market in South Korea has shown unprecedented growth in recent months. Bitcoin prices surged from 105 million won in October to 135.8 million won by the end of November, contributing to a substantial rise in total market capitalization. In November, the total value of digital assets held by South Korean investors reached 102.6 trillion won, nearly double October’s valuation of 58 trillion won.
Daily Trading Volume Rivals Stock Market
One of the most striking developments is the rapid growth in cryptocurrency trading volumes, which now rival those of 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.
Despite the impressive growth in cryptocurrency adoption, the market faces challenges such as the absence of a unified regulatory framework and vulnerability to external shocks.
