Upbit Dominates South Korean Crypto Exchange Market and Altcoins Gain Preference: Research

Recent research conducted by DeSpread reveals that Upbit has maintained its dominant position in South Korea’s cryptocurrency exchange market, boasting an impressive market share of 80%. 

This market dominance has remained steady throughout the year, despite a brief dip to 70% in August, which quickly rebounded to 80% the following month.

While Upbit leads the market, other major South Korean exchanges such as Bithumb, Coinone, and Korbit have also made their mark. Bithumb, as the second-largest player in the market, holds a significant position, accounting for approximately 15% to 20% of the total trading volume among these major exchanges. Coinone follows, with a market share ranging from 3% to 5%. In contrast, Korbit’s market share is less than 1%, reflecting its limited presence in the market.

In recent months, South Korean exchanges have witnessed a surge in trading volume, particularly following news related to Ripple. In May, a U.S. court ruled in favor of Ripple in the ongoing lawsuit brought by the SEC, stating that selling XRP on exchanges does not constitute an investment contract.

This favorable ruling led to an 80% surge in XRP prices and a substantial increase in trading volume on the four major Korean exchanges, from $27 billion in June to $37 billion in July, indicating a remarkable 37% monthly increase. While this news had a substantial impact on trading activity, it also shows the significant influence of Ripple in the South Korean crypto market.

South Korean Investors Prefer Altcoins

South Korean investors have a clear preference for altcoins over major cryptocurrencies. The report from DeSpread Research highlights that “the majority of individual investors on Upbit show strong interest in altcoins with high-profit potential and tend to accept the associated high risks.” This preference for altcoins is one of the key factors driving high altcoin trading volumes in the Korean market.

It’s noteworthy that within Upbit, trading volumes for major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC) are relatively lower compared to the global market. 

This indicates the unique characteristics of Upbit and reflects regional disparities in investor preferences and investment strategies. While cryptocurrencies like Bitcoin and Ethereum dominate the global market, in South Korea, it’s the altcoins that attract substantial trading interest.

Tron Preferred for Transactions: A Closer Look

When it comes to blockchain networks used for transactions, South Korean traders exhibit distinct preferences, and among these, Tron stands out as a popular choice. This choice is attributed to several factors, with one of the key drivers being the relatively lower transaction fees offered by the Tron network.

In contrast to other blockchain networks, Tron’s network offers cost-effective transaction fees, making it an appealing option for traders who are conscious of minimizing fees associated with their crypto transactions. 

This cost-efficiency has led to increased adoption of the Tron network for various transactions, from simple peer-to-peer transfers to interactions with decentralized applications (DApps) built on the Tron ecosystem.

Moreover, the Tron network’s scalability and speed have contributed to its popularity for transactions. Tron’s network is known for its capacity to handle a high volume of transactions rapidly, ensuring that users experience minimal delays and quick confirmation times. This efficiency is particularly advantageous in an environment where traders and investors prioritize speed and responsiveness.

Another significant aspect that may contribute to Tron’s preference for transactions is the network’s ecosystem. Tron hosts a variety of DApps covering diverse use cases, from decentralized finance (DeFi) platforms to decentralized entertainment applications. This rich and active ecosystem encourages users to engage with Tron, as they can explore and utilize these decentralized applications efficiently, often at lower transaction costs compared to some other networks.

South Korean traders’ affinity for Tron also points to the region’s distinct cryptocurrency market dynamics. While networks like Bitcoin and Ethereum continue to dominate the global cryptocurrency landscape and boast high trading volumes worldwide, South Korea’s cryptocurrency market exhibits unique preferences.