Report Reveals Explosive Surge in Korean Crypto Market as 6M Investors Thrive on Altcoins at CEX

## South Korea’s Crypto Market Set to Reach 6 Million Investors by H1 2023

The Korean crypto market is poised for a remarkable surge, with the number of crypto investors in South Korea expected to reach 6 million by the first half of 2023, accounting for over 10% of the nation’s total population. This projection comes from a report by Web3 market strategy consulting firm DeSpread.

According to the report, the majority of these investors participate in centralized exchanges (CEX). Despite a global decline in overall cryptocurrency trading volume, the major Korean CEXs are thriving. In fact, the four major Korean exchanges, namely Upbit, Bithumb, Coinone, and Korbit, collectively contribute 10% of the global trading volume, even surpassing the second-largest exchange, Coinbase.

## Korean CEXs: Major Players in the Global Market

Among the four major exchanges, Upbit stands out as the top player. In February, it reached its peak with a trading volume of $36 billion, capturing 80% of the Korean crypto market. Bithumb follows as the second-largest player, accounting for 15% to 20% of the total trading volume. Coinone and Korbit have smaller market shares, with Coinone holding between 3% and 5% and Korbit claiming a share of less than 1%.

## Altcoins Dominating the Korean Market

The report also highlights the reasons for the high proportion of altcoin trading in the Korean market, which contrasts with Coinbase users’ investment preferences. While Coinbase leans towards Bitcoin and Ethereum, Upbit’s trading volume primarily relies on individual investors who demonstrate a keen interest in altcoins with high-profit potential and are willing to embrace associated risks.

On the other hand, Coinbase’s institutional investors prioritize portfolio stability, leading to a relatively higher share of Bitcoin (BTC) and Ethereum (ETH) trading volumes.

## Popular Cryptocurrencies in the Korean Market

The report delves into the specific cryptocurrencies favored by Korean investors. According to the data, Loom Network ($LOOM) dominated trading with a ratio of 62%, followed closely by eCash ($XEC) at 55% and Flow ($FLOW) at 43%. Stacks ($STX) and Bitcoin SV ($BSV) also made the cut with ratios of 37% and 34%, respectively.

## Conclusion

The growth of the crypto market in South Korea is set to be substantial, with the number of investors expected to reach 6 million by H1 2023. The major Korean CEXs, including Upbit, Bithumb, Coinone, and Korbit, are integral players in the global market, contributing 10% of the global trading volume.

The preferences of Korean investors contrast with those of Coinbase users, with a higher proportion of altcoin trading in the Korean market. This is driven by individual investors seeking high-profit potential in altcoins, while Coinbase’s institutional investors prioritize portfolio stability, resulting in a greater focus on Bitcoin and Ethereum.

Overall, the Korean crypto market presents unique opportunities and dynamics, making it a significant player in the global cryptocurrency landscape.

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