The South Korean virtual asset market is witnessing explosive rise

In July, the South Korean virtual asset market experienced a strong trend of "both volume and price rising." As of 8 PM on July 24, the largest cryptocurrency trading platform in South Korea saw a 24-hour trading volume surpassing $10.2 billion, with a rise of 94.5%; the second-ranked platform also experienced a surge, with a 24-hour trading volume exceeding $3.2 billion, rising by 61.5%.

Behind this wave of frenzy in the market is the silent accumulation of underlying liquidity. Data shows that from July 13 to 19, the trading volume of stablecoins on South Korea's five major cryptocurrency exchanges reached 22.26 trillion won (approximately 1.62 billion USD).

The trading enthusiasm of Korean investors was already evident on July 11. On that day, the price of the XRP token rose from $2.60 to $3.00 within a few hours, with a total net buying pressure of $45 million in the spot market, 70% of which came from Korea's largest trading platform. This surge was almost entirely driven by Korean buying.

XRP is one of the most favored virtual assets among Korean investors, accounting for about 15% of the global trading volume. On July 18, XRP broke through the $3.6 mark, reaching a six-month high. As of July 24, the price of XRP was approximately $3.16, with a 24-hour trading volume of $2.28 billion on a certain Korean platform, maintaining its position as the most popular asset on the platform.

On July 23, the SAHARA token surged in its second wave. The single-day highest rise reached 86%, ranking third in trading volume on a certain South Korean platform's spot market. As of 8 PM on July 24, its trading volume in the past 24 hours reached 2.3 billion USD, with spot trading comprising 43.56% from the largest platform in South Korea, and another 4.33% from the second largest platform.

After the SAHARA token retraced, the NEWT token surged. As of 8 PM on July 24, NEWT rose over 70% in 24 hours, with a trading volume of $1.78 billion, of which 57.07% came from the largest platform in South Korea and 4.99% from the second largest platform. This fully demonstrates the concentration and explosive power of South Korean crypto retail investors.

In addition to the above tokens, South Korean investors have also driven the rise of multiple tokens such as Hyperlane, Babylon, HUMA, LISTA, and MERL.

With Bitcoin hitting historical highs, ETH rebounding, and an improved regulatory environment, the pace of listing new coins on South Korean exchanges has noticeably accelerated. As of July 21, the five major virtual asset trading platforms in South Korea have listed a total of 229 KRW virtual assets, accounting for 85.44% of last year's total. The two major platforms have already surpassed last year's total number of listings this year, and are expected to set a new high in nearly five years.

The "coin listing craze" has provided more options for speculative funds and has led to the continuous shift of market hotspots. However, the intensive influx of funds and rapid rotations also come with significant volatility risks: XRP and SAHARA have experienced short-term pullbacks of over 10%, with a dense occurrence of liquidations in contracts. If liquidity suddenly reverses, prices will face severe fluctuations.

Analysts warn that as the altcoin frenzy finally arrives, the behavior of South Korean investors will undergo a significant change. Against the backdrop of a surge in new capital inflows, South Korean investors' enthusiasm for altcoins often surpasses that of overseas markets. In small investments, the FOMO mentality plays a crucial role, sometimes exposing investors to significant risks.