South Korean traders have been known to create speculative frenzies in smaller cryptocurrencies. One such altcoin rose as much as 6,600% in September before listing on international exchanges. However, Bitcoin has remained king since September as its dominance over the overall market has increased.
South Koreans exploded the prices of these 2 altcoins!
As you follow from Kriptokoin.com, there has been a rapid increase in altcoin prices in the last few months. Part of this goes back to South Korean traders, who are known for their high risk-taking behavior that has fueled speculative frenzies in tokens. Analysts at on-chain data firm CryptoQuant say spot volumes on local exchange Upbit have nearly doubled since September. Meanwhile, Upbit accounts for more than 85% of Korean trading volume. Transaction volume increased by 82% in October compared to September. Thus, transaction volume increased from 32.8 billion dollars to 59.8 billion dollars.
Rising volumes attract market makers and traders. This situation probably creates a wheel effect. They too are investing profits to continue buying in a rising market. Notable breakouts include altcoin Loom Network’s LOOM, whose price increased nearly tenfold in two months, and HIFI, whose prices increased by 6,600% in September alone. CryptoQuant analyst Bradley Park makes the following statement on the subject:
For coins listed only on Korean exchanges, it has become popular to list futures on offshore exchanges if there is a significant increase in trading volume. From an on-chain perspective, market makers appear to emerge as purchasing power.
How is HIFI and LOOM performance?
Bradley Park says HIFI’s reserves on Upbit are up 27.5%. Thus, he states that it increased from 62 million tokens to 82.9 million tokens. Park notes that this is a sign that South Korea plays an important role in altcoin rallies.
Loom trading volume by exchanges. Source: CryptoQuantThe chart indicates that Upbit is leading the volume increase in LOOM markets. It also reveals that the altcoin price increased by 238% in September and 100% in early October. The last period shows that the gains reversed in the later half of the month.
Much of the rise in decentralized lending and borrowing platform HIFI occurred before Binance launched perpetual futures tied to HIFI in mid-September. After the launch, the altcoin price started to decline.
Bitcoin increases its market dominance!
While altcoin activity increased on South Korean exchanges, Bitcoin maintained its dominant position worldwide. Bitcoin’s market dominance increased from 49% to 53% during this period. This shows that BTC remains the most preferred bet among traders. Meanwhile, data shows that the total market value has increased from just over $1 trillion at the beginning of September to $1.4 trillion as of Friday.
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