South Korean Crypto Craze Driven by Altcoin Interest, According to Report
A new report suggests that the rising interest in alternative cryptocurrencies, or altcoins, is driving the South Korean crypto craze. The report, published by blockchain market consultancy DeSpread and covered by South Korean media outlet Kyunghyang Games, highlights the preference for altcoins among domestic crypto exchange users in the country.
According to the report, altcoin preference is one of the main characteristics of the domestic virtual currency market in South Korea. Users of domestic crypto exchanges primarily trade in altcoins, rather than Bitcoin (BTC) or Ethereum (ETH).
The influence of the South Korean market is also noticeable in major global altcoin markets with significant market capitalization, as stated by the report. For instance, on August 5, 2023, 90% of the global trading volume of Stacks (STX) occurred on domestic crypto exchanges. Similarly, at various times, 60% of the global trading volume of the NFT marketplace token Blur (BLUR) originated from South Korea.
Furthermore, search engine data indicates that South Koreans are more interested in crypto-related terms compared to individuals in the US and Japan. While Americans and Japanese users tend to search for stocks-related terms, South Koreans are more inclined to search for the term “코인” (meaning “coin” in English), which is mainly used to refer to altcoins in South Korea. Additionally, South Koreans showed a higher proportion of searches for “Bitcoin” in 2023 compared to web users in the US and Japan.
The report also reveals that mentions of the South Korean crypto market are increasing on overseas media websites. There has been a steady increase in South Korean crypto news since 2021, with a notable surge in coverage in 2022 centered around Do Kwon and the Terra ecosystem. News reports have since shifted focus to the overall crypto ecosystem, including South Korean government regulations.
The findings of this report suggest that altcoin interest is a driving force behind the South Korean crypto craze. With a preference for altcoins and increasing media coverage, the cryptocurrency adoption in South Korea shows no signs of slowing down.