• The trading volume on Korea’s crypto exchanges reached 12 trillion won Sunday, exceeding the stock market total of 11.47 trillion dollars won from Friday.
  • Altcoins, as opposed to major assets such as BTC or ETH, are preferred by Koreans.

BTC Price Index and Live Chart – CoinDesk”>(BTC) prices have revived a crypto trading frenzy in South Korea, with volumes on local exchanges crossing those in the local stock market last week.

Local media reported on Sunday that the trading volume on South Korean crypto exchanges reached a new record of 11.8 trillion won, or $9 billion if you use the current USD-KRW rate. The volume was higher than Friday’s South Korean share trading volume, which was 11.47 trillion won or $8.7billion.

This is the total amount of transactions on Korea’s largest five won markets: Upbit (8.8 trillion), Bithumb (2.73 trillion), Coinone (176.4 milliards won), Gopax (55.52 billion won), and Coinone (32.8 billion won).

Upbit’s top five crypto markets were won-traded pair of bitcoin (BTC), IQ Protocol IQ, 0x ZRX, and shiba (SHIB).

Korean exchange volumes. (CoinGecko)

Local market analysts said that Korean investors’ risk tolerance increased as a result of a larger volume on the crypto market.

In a message, Ki Young-Ju shared that Koreans prefer high-risk investments with high returns because of their rapidly growing economies. With the growing wealth gap, people are increasingly turning to altcoins as an alternative investment.

These high volumes are despite the fact that bitcoin, ether and other tokens trade at a higher price on Korean exchanges than their counterparts globally, which indicates strong retail demand.

Bradley Park, the head of CryptoQuant’s research, shared in a message that “the kimchi premium has reached its highest level since the Luna crash on May 20, 2022.” It is often viewed as a sign that retail demand is strong, since Korean investors are willing pay a premium price for Bitcoin.

The daily Upbit trading volume is still high after it reached 60K in March. This further confirms the retail inflow,” Park said.

The “Kimchi Premium” is the difference between Bitcoin prices in Korea and global exchanges. Bitcoin trades at a premium of 10% in South Korea, opening up a lucrative but complex arbitrage that involves buying bitcoin on international exchanges and selling it to a Korean exchange in exchange for a profit.

Omkar Godbole is the editor.