- More than 40 different tokens have held a daily top spot for trades, but XRP sits at the top with 70 days of being the most traded asset.
- Upbit, which has a very active trader base, is much more popular in the country than non-Korean exchanges.
- The volumes on the exchange are similar to U.S.-based Coinbase and Kraken, but that fact garners very little attention in the English-speaking world.
Bitcoin (BTC) is undoubtedly the most popular asset, reflected in both its volume traded and market cap. However, a look at South Korea reveals that here, XRP is actually the most traded asset. Crypto analytics platform Kaiko has just come out with a report that tells an interesting story.
A Regulated Market Boosts Growth
South Korea has actively regulated its crypto market, requiring crypto service providers to register with the Korea Financial Intelligence Unit (FIU). Since the 2020 law, 37 have registered, including Upbit. However, recent FIU inspections revealed issues at these exchanges, resulting in fines and a demand for prompt improvements.
Since the crypto legislation, Upbit rapidly grew its market share among Korea’s “Big Four” exchanges, surging from below 50% in winter 2020 to 85% by May 2021. This dominance continued for two years. Recently, Bithumb saw growth, moving from 10% to over 20%. In contrast, Korbit dwindled to below 0.25%, and Coinone maintained under 5%.
XRP Number One, Not BTC
On Coinbase, the primary trading volumes come from BTC (36%) and ETH (22%). Altcoins contribute to 31% of the volume, while stablecoin trading, like USDT-USD, makes up 10%. Korean exchanges, in contrast, have minimal to no trading between stablecoins or between stablecoins and fiat currencies.
On Upbit, ETH-KRW ranks as the 9th most traded instrument, trailing behind others like DOGE, SOL, and MASK. This year, more than 75 instruments on Upbit recorded over $1bn in volume, with all but two being altcoins.
In contrast, the report shows that Upbit saw over 40 different instruments achieve the highest daily volume at various times. The most frequently traded instrument on Upbit was XRP-KRW, leading for 70 days, while BTC-KRW followed with 64 days. Other tokens, including Threshold (T), HIVE, and STEEM, also made it to the top spot on Upbit on certain days.
Two Players Share the Market
The Korean crypto market now primarily revolves around two major players rather than the earlier “Big Four”. When comparing the number of tokens available for trading, Korea’s top two exchanges resemble the leading U.S. platforms.
Upbit offers just under 200 tokens, while Coinbase, Kraken, and Bithumb hover around 250. Notably, Kraken provides the most trading pairs, over 650, due to its diverse currency denominations. In contrast, Korean platforms mainly focus on KRW-denominated pairs.
In terms of trading volume, Coinbase and Upbit are closely matched, each recording around US$330 billion (AU$521 billion) year-to-date. Bithumb follows with just over US$50 billion (AU$79 billion). A significant distinction is that on Korean platforms, especially Upbit, altcoins dominate the trading volume, with only 2% from ETH and 9% from BTC.
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