South Korean Crypto Markets Boom: Altcoins Spike After Bitcoin Halving

Following Bitcoin's fourth halving event, several altcoins on South Korea's Upbit exchange have seen substantial trading volume increases. Cardano (ADA), Ankr (ANKR), 1inch (1INCH), NEM (XEM), and Loom Network (LOOM) have all experienced notable trading volume gains, with some surging by over 450%. Meanwhile, the South Korean crypto market as a whole has witnessed a surge in trading volume to levels not seen in over two years, driven by intense competition and regulatory pressure.

South Korean Crypto Markets Surge: Altcoins Witness Trading Volume Spike After Bitcoin Halving

Amidst heightened anticipation, Bitcoin underwent its highly anticipated fourth halving event. In the aftermath of this significant milestone, several altcoins listed on Upbit, South Korea's largest cryptocurrency exchange, experienced a remarkable surge in trading volumes.

Altcoin Trading Volume Skyrockets on Upbit

Following the Bitcoin halving, traders in South Korea, a pivotal cryptocurrency market, have shifted their attention to specific altcoin projects. On Upbit, the leading crypto exchange in the country, the trading volume in five altcoins has garnered significant attention:

• Cardano (ADA): ADA's trading volume soared by an impressive 97% within a four-hour period, reaching $14 million.
• Ankr (ANKR): ANKR witnessed an even more significant surge, with its trading volume on Upbit surging by 187% in just one hour, reaching $17 million.
• 1inch (1INCH): 1INCH experienced a remarkable 400% increase in trading volume over a four-hour period, reaching $7 million.
• Loom Network (LOOM): LOOM's trading volume surged by 215% within an hour, reaching $10 million.
• NEM (XEM): XEM exhibited the most significant increase, with its trading volume skyrocketing by over 450% in just one hour, reaching $13 million.

South Korean Crypto Market Dynamics

South Korea's crypto market has recently witnessed a surge in trading volume, reaching levels not seen in over two years, according to data from research firm Kaiko. This surge is attributed to increased competition and evolving market dynamics.

Upbit has emerged as a dominant player in the South Korean crypto scene, gaining significant market share in recent years. However, competitors such as Bithumb and Korbit are actively pursuing market share. Notably, Bithumb's introduction of a zero-fee policy in October 2023 led to a tripling of its market share, contributing to the overall increase in trading volume.

KRW Trading Dominates

In a notable shift, the South Korean won (KRW) overtook the US dollar as the dominant currency for crypto trading on exchanges in March. However, KRW volumes experienced a decline in April. Nevertheless, Kaiko suggests that the recent approval of spot BTC and ETH ETFs in Hong Kong could revitalize market sentiment in the Asia-Pacific region.

Regulatory Pressure and Market Shifts

The global regulatory landscape has also impacted the cryptocurrency market. Following a notice from the SEC, Uniswap Labs saw a substantial decline in its altcoin price, leading to increased trading volumes.

Kaiko's analysis indicates that Coinbase has expanded its market share, while Binance.US has experienced a significant drop. Binance.US's legal issues have been a contributing factor to its loss of market share.

Bitcoin and DXY Correlation Falls

In other market developments, Kaiko has reported that the correlation between Bitcoin and the DXY, a measure of the US dollar's strength against a basket of currencies, has fallen to its lowest level in over a year. During this period, Bitcoin, along with other risky assets, declined in value as the US dollar strengthened amidst unexpected inflation hikes and rising tensions in the Middle East.

In contrast to traditional safe-haven assets, Bitcoin has failed to attract investor interest during this period of uncertainty and volatility.