As reported by Kaiko, a blockchain analytics firm, the number of trades on the cryptocurrency markets in South Korea increased sharply in the first quarter of 2024, reaching their highest levels in over two years. This was more than the amount of trades in Korean Won (KRW) compared to US Dollars (USD).
According to statistics from Kaiko, the rise in trade volume, which was most noticeable in early March, was caused by improved macroeconomic conditions and more competition among local cryptocurrency exchanges.
Kaiko Anticipates Crypto Market Growth
Upbit has had an average market share of 82% over the last three years, making it the most prominent cryptocurrency company in South Korea. However, recent events show that the market is changing. Around the end of 2023, both Bithumb and Korbit started ads with no fees, which made the competition strong.
Researchers at Kaiko believe that after implementing its no-fee policy in October 2023, Bithumb’s market share tripled, while Korbit’s market share stayed relatively steady at around 1% in 2024. But even though Bithumb was able to increase the number of trades, their income dropped by 60% in 2023, which is why they ended the zero-fee program.
Even though KRW volumes went down a little in early April, Kaiko believes that market state could improve across the Asia-Pacific region now that spot Bitcoin and Ethereum exchange-traded funds (ETFs) have been approved in Hong Kong.
The Hong Kong Securities and Futures Commission gave HashKey and Bosera International preliminary approval for two spot crypto ETFs. This is a significant move forward for Asian investors. It will probably take the Hong Kong Stock Exchange about two weeks to finish getting ready for product listing and other related steps.
