South Korea’s Crypto Market Sees Huge 2024 Surge in Investor Numbers and Trading Volume

• South Korea’s virtual asset investors grew 21% in early 2024, reaching 7.78 million amid stronger market optimism.
• Daily trading volumes in South Korea’s crypto market spiked 67% to 6 trillion won, fueled by rising Bitcoin interest.
• Male investors in their 30s led South Korea’s crypto market, with Bitcoin topping preferred assets despite increased volatility.

South Korea’s crypto market saw a sharp increase in investor participation and trading activity in the first half of 2024. The Financial Intelligence Unit (FIU) of the Financial Services Commission reported on October 31 that the number of virtual asset investors grew to 7.78 million, a 21% rise from the 6.45 million reported in the second half of 2023. Daily trading volume also jumped from $2.61 billion to $64.35 billion, highlighting the strengthened investment sentiment driven by rising crypto prices.

Trading Volume and Market Capitalization Increase Sharply

Investment volume experienced substantial growth, with daily transaction volumes up by 67%, reaching 6 trillion won from the previous 3.6 trillion won. This uptick paralleled a 27% boost in the market capitalization of virtual assets, which climbed to 55.3 trillion won. Analysts attribute the increased interest partly to Bitcoin’s recent price, which crossed the 100 million won mark, igniting interest among domestic and international investors.

The cryptocurrency boom reflects strong market optimism influenced by various factors, including former President Donald Trump’s possible return to office. Trump’s stance on digital assets appears favorable, intensifying investor interest and capital inflow. The FIU also cited developments like the growing influx into U.S. Bitcoin spot exchange-traded funds (ETFs) as catalysts in the market’s revival.

Men in Their 30s Lead as the Largest Investor Group

Among South Korean crypto investors, men in their 30s held the largest share, with 1.58 million participants, followed by men in their 40s (1.5 million) and younger men under 30 (1.08 million). Male investors overall accounted for 68% of the market, numbering 5.29 million. 

Notably, 67% of all participants held assets valued under 500,000 won, while those with over 10 million won represented 10% of the investor base. Additionally, high-net-worth individuals, with assets exceeding 1 billion won, constituted 0.03% of the total.

Asset Preferences and Price Volatility Trends

Bitcoin remains the dominant choice, with 37.2% of investors favoring it, followed by Ethereum (11.1%), Ripple (10.6%), and Dogecoin (2.8%). Volatility in crypto prices has surged, with the Maximum Drawdown (MDD) of crypto assets increasing by 8 percentage points to 70%. 

By comparison, KOSPI’s MDD was 14%, illustrating the cryptocurrency market’s heightened volatility. The FIU cautioned investors to assess risks carefully, particularly as virtual asset price swings intensify with increased ETF inflows and policy announcements from U.S. presidential candidates.