Decline in Bitcoin Trading Volume Rankings by National Currency
Attributed to Increased Altcoin Trading
Global Bitcoin Market Cap Share at 44%
Domestic Bitcoin Market Cap Share Only 16.6%
[Asia Economy Reporter Lee Jung-yoon] The ranking of the Korean won in Bitcoin trading volume by currency has slipped from 3rd place to lower positions. Since the trading volume of major domestic cryptocurrency exchanges has remained similar or has not significantly decreased compared to before, this is interpreted as an effect of increased altcoin trading instead of Bitcoin.
According to Coinhills, a cryptocurrency disclosure platform, the proportion of Bitcoin traded in Korean won as of 6 a.m. the previous day was 2.17%, ranking fifth after the US dollar (87.85%), Japanese yen (3.87%), euro (2.75%), and British pound (2.31%). This was followed by the Turkish lira (0.40%), Australian dollar, and Brazilian real (0.15%) respectively.
Previously, the proportion of Bitcoin traded in Korean won had been recorded at 3-4%, ranking third after the US dollar and Japanese yen. However, this month, the ranking slipped to fifth. As of around 9 p.m. the previous day, the Korean won trading share slightly increased to 2.34%, rising to fourth place, but it still recorded less trading volume than the euro, and the daily trading quantity actually decreased by 259 units.
The decline in the ranking of Bitcoin trading volume in Korean won is interpreted as due to altcoins having a higher share than Bitcoin in domestic cryptocurrency trading. Additionally, the trading volume of the top four Korean won market exchanges remaining similar to before supports this explanation. Since the exchange trading volume did not significantly decrease, the reduction in Bitcoin trading share means that altcoin trading has increased accordingly.
According to CoinGecko, a cryptocurrency market data site, as of 9:20 p.m. the previous day, the trading volume of Upbit, the exchange with the highest market share in Korea, was $1,053.94 million (approximately 1.5124 trillion KRW), similar to the beginning of this month. This was 1.82 times higher than the lowest trading volume recorded on the 4th of this month. Besides Upbit, the trading volumes of other major domestic exchanges such as Bithumb, Coinone, and Korbit also remained at similar levels as before. Professor Hong Ki-hoon of Hongik University’s Business Administration Department explained, "Since there was no significant difference in exchange trading volumes, it seems highly likely that the ranking dropped because trading shifted from Bitcoin to altcoins."
The market capitalization share of Bitcoin in the domestic cryptocurrency market was also lower than the global statistics. According to the "2022 First Half Cryptocurrency Business Operator Survey Results" recently released by the Financial Intelligence Unit (FIU) under the Financial Services Commission, as of the end of June, Bitcoin held the highest market capitalization ranking among the top 10 global cryptocurrencies, with a share of 44%. Although Bitcoin also had the largest market capitalization among the top 10 domestic cryptocurrencies, its share was only 16.6%.
In contrast to global statistics, Ripple (XRP) showed a higher market capitalization share domestically. Globally, Ripple ranked 7th in market capitalization with a 2% share, but in Korea, it was analyzed as the 2nd highest market capitalization, surpassing Ethereum, the leading altcoin. Its market capitalization share was also 12.5%.
Ripple showed a price increase of over 30% compared to early this month. Recently, it has been rising amid expectations that the two-year-long lawsuit with the U.S. Securities and Exchange Commission (SEC) over whether it is a security will be resolved. Around 11 p.m. the previous day, Ripple had the highest 24-hour trading volume on Upbit and Coinone, with trading volume ratios of 19.88% and 28.03%, respectively. On Bithumb and Korbit, it recorded the second highest trading volume, with trading volume ratios of 19.86% and 30.59%, respectively.
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