The Rising Interest in Altcoins
A recent report from the South Korean media outlet Kyunghyang Games, as cited by blockchain market consultancy DeSpread, has highlighted the growing interest in alternative cryptoassets in South Korea. The report emphasizes that altcoin preference has become a defining feature of the domestic virtual currency market. According to the authors of the report, users of domestic crypto exchanges in South Korea are showing a strong inclination towards trading in altcoins over established cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Report Authors: “Altcoin preference is one of the main features of the domestic virtual currency market.”
Report Authors: “Users of domestic crypto exchanges mainly trade in altcoins, rather than Bitcoin (BTC) or Ethereum (ETH).”
The Influence of the South Korean Market
The DeSpread report also points out the significant influence of the South Korean market on major global altcoin markets, particularly those with substantial market capitalization. Notably, the report reveals that a substantial portion of the global trading volume of altcoins like Stacks (STX) and the NFT marketplace token Blur (BLUR) originates from South Korean exchanges.
- On August 5, 2023, 90% of the global trading volume of Stacks (STX) took place on domestic crypto exchanges.
- At various times, 60% of the global trading volume of the NFT marketplace token Blur (BLUR) has been attributed to trading activities in South Korea.
Moreover, search engine data indicates that South Koreans are displaying a higher interest in crypto-related terms compared to users in the US and Japan. While Americans and Japanese individuals tend to search for stocks-related terms, South Koreans are more inclined to search for the term “코인” (literally “coin”), which predominantly refers to altcoins in the South Korean context. Additionally, South Korean web users exhibit a higher propensity to search for “Bitcoin” relative to their counterparts in the US and Japan.
Report Authors: “Mentions of the South Korean crypto market have been increasing on overseas media websites.”
Report Authors: “There has been a steady increase in South Korean crypto news since 2021, with a notable surge in coverage related to [Do Kwon] and the Terra ecosystem in 2022.”
The authors of the report further note that the focus of news reports has transitioned towards the broader crypto ecosystem, encompassing South Korean government regulations and developments in the industry.
