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- South Korean Traders Propel Recent Surge in Altcoin Values, CryptoQuant Reports
South Korean Traders Propel Recent Surge in Altcoin Values, CryptoQuant Reports
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- Exploring South Korean Traders' Impact on Speculative Surges in Small Cryptocurrencies
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- Bitcoin's Enduring Reign: Dominance Strengthened in the Post-September Crypto Landscape
In recent months, the altcoin market has experienced notable surges, with tokens like Loom Network's LOOM witnessing a tenfold increase in price over two months, and HIFI recording a staggering 6,600% spike in September alone.
A significant driver behind these rapid price hikes in alternative cryptocurrencies (altcoins) can be attributed to South Korean traders, renowned for their inclination towards high-risk trading behaviors that often ignite speculative fervors in various tokens. On-chain data firm CryptoQuant's analysts highlighted the substantial growth in spot volumes on the local exchange Upbit since September. Upbit, constituting more than 85% of the Korean trading volume, saw an 82% surge in October compared to September, with trading volume soaring from $32.8 billion to $59.8 billion.
This surge in trading volumes on Upbit created a flywheel effect, attracting market makers and traders who reinvested profits, contributing to a continuously rising market. Notable examples include LOOM and HIFI, which experienced significant booms during this period.
Analyst Bradley Park from CryptoQuant emphasized the influence of market makers in driving altcoin rallies, particularly for coins listed exclusively on Korean exchanges. He noted that the increased trading volume often led to the listing of futures on overseas exchanges.
HIFI's reserves on Upbit increased by 27.5%, from 62 million tokens to 82.9 million tokens, indicating South Korea's pivotal role in fueling altcoin rallies. The chart reveals Upbit's leading role in volume growth in LOOM markets, with prices surging 238% in September and another 100% in early October before experiencing a reversal in the latter half of the month.
Analyzing Loom Trading Volume: Insights from CryptoQuant Data
While the altcoin activity flourished on South Korean exchanges, Bitcoin maintained its dominant position globally. Bitcoin's market dominance, measured by its capitalization compared to the rest of the market, rose from 49% to 53% during this period, underscoring its continued status as the preferred choice among traders.
Despite the surge in altcoin activity, the overall market capitalization reached $1.4 trillion as of Friday, up from just over $1 trillion at the beginning of September, indicating a collective growth across the cryptocurrency market, data shows.
Read More: Smart Investments: South Korea's Pension Fund's $20M Coinbase Stake Yields 40%
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