South Korean won surpasses dollar to become world's most traded currency for crypto assets in Q1
The won is now one of the world's most frequently traded currencies with crypto assets, according to Bloomberg, as speculative demand for high-risk tokens surges in South Korea. According to research firm Kaiko, the won's cumulative trading volume on centralized crypto exchanges reached $456 billion in the first quarter of 2024, surpassing the dollar's $445 billion trading volume.
The rise in won-denominated trading volume is partly attributed to South Korea's ongoing fee war. Some small exchanges such as Bithumb and Korbit recently launched zero-fee trading promotions in an attempt to attract traders from Upbit. Upbit dominates the local market in South Korea, with a market share of more than 80% for spot trading volume.
Even in the high-risk cryptocurrency sector, South Korea is an exception. Local investors prefer to invest in smaller, more volatile tokens, so-called altcoins, rather than larger cryptocurrencies like Bitcoin and Ethereum. On average, transactions involving smaller tokens account for more than 80% of all cryptocurrency trading activity in South Korea.
