On the 19th, ‘Disspread Research’, a research organization of Web3 consulting company Disspread, announced that it had published a report on the surge in interest in the domestic virtual asset (cryptocurrency) market following the election of candidate Donald Trump in the U.S. presidential election. .
This report shows that since candidate Trump was elected on the 6th (Korean time), △increased trading volume on domestic virtual asset exchanges △upbit It was analyzed that the expansion of market share and the increase in preference for MEMCOIN among domestic virtual asset investors were notable.
(BTC) price rose about 32% from $68,000 (KRW 94,778,400) to $90,000 (KRW 125,440,000) in the week from the 5th to the 12th. As the price of Bitcoin moved, the trading volume on exchanges also increased noticeably. During the same period, the total trading volume of Korea’s five major virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) increased from $2.88 billion (KRW 4.0268 trillion) to $25.22 billion (KRW 35.2525 trillion). billion won), an increase of about 8.75 times.
In particular, Upbit’s transaction amount increased approximately 10.73 times during the same period. This increasing trend continued, with the daily trading volume on the 14th alone reaching 22 trillion won, exceeding the combined trading volume of the stock market (10.864 trillion won) and the market (6.872 trillion won). The report analyzed that the interest of domestic investors shifted to virtual assets due to the rise in exchange rates and the contraction of the domestic stock market after Trump’s election.
Domestic virtual asset trading volume showed a notable increase compared to global standard exchanges. As a result of comparing the trading volume of the global exchange Binance and the five major domestic exchanges, as of November 12, the domestic exchange market share compared to Binance was 23.9%, up 8.3 percentage points from the previous month.
The monthly market share gap between Upbit and Bithumb trading volume has widened again. In October, when Bitcoin was in decline, the market share gap between Upbit and Bithumb narrowed to 25.62%, but in November, the average market share was 69.01% for Upbit and 29.33% for Bithumb, widening the gap to 39.68%p. Done. The report analyzed, “During a rising market, the gap between the two exchanges would widen as Upbit’s market share increased. As the inflow of investors increases, the gap in market share between the two exchanges will deepen.”
Lastly, it appears that domestic investors’ preference for meme coins has increased. As a result of checking the virtual asset transaction amount of the five largest domestic exchanges from the 7th to the 13th, in particular, the transaction amount of Dogecoin (DOGE) was 1.82 times higher than that of Bitcoin, taking an overwhelming first place. In addition, Shibainu (SHIB) also ranked 4th after Bitcoin and ().
Seunghwa Lee, head of the research team who wrote the report, said that the reason Dogecoin showed a notable rise was “because it is closely related to Tesla (NASDAQ:) CEO Elon Musk, who is considered a direct beneficiary if Trump is elected.” He explained, “In addition, the continued boom of the memecoin sector in the global market as a whole and the fact that it is the memecoin most familiar to domestic investors, especially Upbit users, appear to be factors.”
The preference for meme coins in the domestic virtual asset market was clearly revealed when compared to global transaction amounts. As a result of checking the 10 virtual assets with a high percentage of trading volume on domestic exchanges compared to the world as of the 7th to 13th, Cat in a Dog’s World (MEW) recorded 60%. This means that more than half of the world’s MEW transaction value came from Korea.
After the preference for meme coins rapidly increased among domestic investors, Upbit began implementing a strategy to support meme coin transactions. Upbit began supporting trading of a total of four memecoins: BRETT, PEPE, and MEW from August 20th to November 14th. The research team predicted, “This means that the high interest in altcoins in the domestic market is spreading to meme coins,” and added, “It is necessary to pay attention to the future actions of domestic exchanges and the movements of investors.”
1. Can you tell us more about the report published by Disspread Research on the surge in interest in the domestic virtual asset market following the U.S. presidential election? What were the main findings, and how does this relate to the increased activity on domestic exchanges like Upbit?
2. The report highlights the growing preference for meme coins among domestic investors. Can you explain what this means for the overall cryptocurrency market in Korea, and how it compares to global trends? Do you think this preference will continue or fade over time?
3. As the trading volume on Korean exchanges increases, there are concerns about potential regulatory changes from the government. How might these changes impact the domestic cryptocurrency market, and what are your thoughts on the current state of regulations in Korea?
4. With the rise of virtual assets, there is a growing debate about how traditional financial institutions should approach cryptocurrencies. How do you see the interaction between traditional finance and cryptocurrency evolving in the future, particularly in Korea?
5. what advice would you give to investors looking to get involved in the cryptocurrency market in Korea? What are some key factors they should consider before investing?