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South Korean Traders Fuel Recent Altcoin Rally, States CryptoQuant
- South Korean Traders and Cryptocurrency Speculation
- The Role of South Korean Traders in the Recent Altcoin Surge
- Noteworthy Booms in Cryptocurrency
- Trading Volume Growth of Loom
- Bitcoin's Dominant Position
South Korean Traders and Cryptocurrency Speculation
South Korean traders have become renowned for driving speculation in smaller cryptocurrencies. One token, for example, surged by as much as 6,600% in September before it was listed on global exchanges. Nevertheless, bitcoin has maintained its dominance over the broader market since September, witnessing an increase in its control over the total market.
The Role of South Korean Traders in the Recent Altcoin Surge
Some of the recent rapid growth in altcoin prices can be attributed to South Korean traders. These traders are known for their willingness to take high risks, often triggering speculative frenzies in tokens. Spot volumes on the local exchange, Upbit, have almost doubled since September, according to analysts at the on-chain data firm, CryptoQuant. Upbit, which accounts for over 85% of Korean trading volume, saw an 82% growth in October compared to September, with trading volume rising from $32.8 billion to $59.8 billion. This potentially created a flywheel effect, as increasing volumes drew market makers and traders, who then reinvested their profits to continue buying in an upturning market.
Noteworthy Booms in Cryptocurrency
Significant increases include Loom Network's LOOM, which experienced a roughly ten-fold increase over two months, and HIFI, whose prices skyrocketed by 6,600% in September alone. For coins only listed on Korean exchanges, if there is a significant increase in trading volumes, it's popular to list futures on these on overseas exchanges, CryptoQuant analyst Bradley Park conveyed. From an on-chain perspective, market makers provide the buying power. Park also mentioned that HIFI's reserves on Upbit witnessed an increase of 27.5% from 62 million tokens to 82.9 million tokens, signifying South Korea's crucial role in altcoin rallies.
Trading Volume Growth of Loom
The chart indicates that Upbit was instrumental in the volume growth in LOOM markets as prices increased by 238% in September and another 100% in early October before reversing gains later in the month. The primary part of the rally in the decentralized lending and borrowing platform HIFI occurred before Binance launched perpetual futures tied to HIFI in mid-September. Following the launch, the token's price began to decline.
Bitcoin's Dominant Position
Despite the spike in altcoin activity on South Korean exchanges, bitcoin has managed to retain its dominant position globally. Bitcoin$42,260 -0.64%'s market dominance, i.e., bitcoin's capitalization in relation to the total market, increased to 53% from 49%, confirming that the leading cryptocurrency remains the primary choice among traders. The overall market capitalization has risen to $1.4 trillion as of Friday, a noticeable increase from just over $1 trillion in early September.
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