South Korea’s Crypto Resurgence: Altcoin Frenzy and Metaverse Momentum Amid Bitcoin’s Bull Run

In the wake of the 2022 Terra/Luna collapse, one might assume South Korea’s crypto community would tread cautiously. However, the current bitcoin (BTC) bull market tells a different story. South Korean investors are once again diving headfirst into the crypto scene, with a particular appetite for smaller cryptocurrencies.

Upbit, South Korea’s leading exchange, which handles over 70% of the nation’s crypto activity, has experienced a remarkable surge in trading volume. Since the November 5 U.S. presidential election, where pro-crypto candidate Donald Trump secured victory, Upbit’s volume has soared 11-fold to $14.3 billion, as reported by Coingecko. This surge is largely driven by altcoins like XRP, dogecoin (DOGE), and other smaller tokens, indicating a resurgence of retail investor enthusiasm.

Notably, the DOGE/KRW pair has dominated Upbit’s trading charts, holding the top spot for ten days, according to 10x Research. Similarly, the XRP/KRW pair has led six times, and the XLM/KRW pair accounted for 19% of the total volume on a recent Sunday. This month, these tokens have seen significant gains: DOGE up 188%, XRP up 164%, and XLM up 463%, though they remain below their 2021 peaks. Meanwhile, bitcoin continues its ascent, trading near all-time highs around $100,000, reflecting a 40% increase, based on CoinDesk data.

Markus Thielen, founder of 10x Research, observed, “Since the Nov. 5 Trump election, bitcoin’s dominance as the crypto with the highest volume has been replaced by altcoins, such as Doge, Ripple, and Stellar… Those are the ones with +100% returns.” He emphasized that monitoring these shifts could yield substantial insights.

South Korean investors’ interest isn’t limited to traditional altcoins; it extends to metaverse tokens like SAND, which are experiencing their first significant rally in three years. Currently, the SAND/KRW pair on Upbit boasts a 24-hour trading volume of $2 billion, representing 14% of the exchange’s total. The SAND token has surged over 200% to 76 cents this month, though it remains below its November 2021 peak of $8.49.

Traders should remain vigilant regarding the rise in metaverse and gaming tokens, as their previous rally in late 2021 coincided with the peak of the bull market.

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