Key Points:
- South Korean Won Surpasses US Dollar: During the first quarter of 2024, the South Korean won took the lead as the most traded fiat currency in the cryptocurrency realm, with transaction volumes exceeding $456 billion, narrowly surpassing the US dollar.
- Impact of Fee Wars: The competitive environment and fee battles among South Korean cryptocurrency exchanges, particularly the introduction of zero-fee trading by Bithumb and Korbit, have reshaped market dynamics, leading to a significant surge in trading activities.
- Long-Term Financial Challenges: Despite the spike in trading volumes driven by aggressive pricing strategies, Bithumb encountered substantial revenue declines, underscoring the financial sustainability issues associated with zero-fee trading models.
In the ever-evolving landscape of cryptocurrency trading, the South Korean won has emerged as the dominant fiat currency, outpacing the US dollar in Q1 2024.
Recent statistics reveal that the won has taken the lead with over $456 billion in transactions on centralized exchanges, slightly exceeding the $455 billion associated with the US dollar.
The South Korean won has now become the most actively traded currency against cryptoassets globally, fueled by a surge in speculative demand for high-risk tokens in the country. Bloomberg Crypto
This shift in trading patterns is largely attributed to the fierce competition among South Korean cryptocurrency exchanges.
According to a report by Kaiko, a combination of economic improvements and an intense “fee war” has significantly boosted activity on Korean platforms, reaching levels not witnessed in over two years.
The Korean won has overtaken the US dollar as the most traded currency for cryptocurrencies in the first quarter. The Block
In contrast, the Euro lagged behind, with only $59 billion in trading volume, securing the third position during the same period.
The report also emphasizes the impact of competitive strategies adopted by local exchanges.
Upbit continues to lead the market, commanding over 82% of the total market share within South Korea since 2021.
#SouthKorea Won Overtakes US Dollar as Top Currency in Global Crypto Trading for Q1 2024. #NewsBytes Bitcoin.com News
However, the landscape started shifting with the recent upsurge in the cryptocurrency market.
Rivals Bithumb and Korbit have aggressively promoted zero-fee trading, disrupting market dynamics.
While Korbit’s market share has remained below 1%, Bithumb witnessed a triple increase in its share following the introduction of zero-fee trading in October 2023.
Despite the spike in trading volumes, Bithumb experienced a significant 60% revenue drop in 2023, prompting the termination of its zero-fee policy in early 2024.
𝗔𝘀𝗶𝗮 𝗪𝗶𝗹𝗹 𝗟𝗲𝗮𝗱 𝗧𝗵𝗲 𝗡𝗲𝘅𝘁 𝗕𝘂𝗹𝗹 𝗥𝘂𝗻
Reasons👇
▶️ Korean Won overtakes US dollar in total #Crypto trading volume.
▶️ Hong Kong approves multiple #Bitcoin and #Ethereum spot ETFs.
▶️ Asia accounts for over 𝟳𝟬% of crypto exchange trading volume.
▶️… Wise Advice
While such strategies may provide short-term volume boosts, they present long-term financial sustainability challenges.
Furthermore, the introduction of new cryptocurrency investment products like spot Bitcoin and Ether ETFs in Hong Kong, approved by the Hong Kong financial regulator, is expected to further influence trading volumes, potentially benefiting the Korean won.
Breaking: South Korean won (KRW) tops global crypto trading, overthrowing USD 👀
As per Kaiko Report, Transactions involving the Korean #won on centralized cryptocurrency exchanges reached \(456 billion in the first quarter of 2024. This figure slightly edged out the \)445 billion… MartyParty
As the landscape evolves, the interplay between regulatory changes, market strategies, and economic conditions promises to maintain the crypto trading arena as dynamic and unpredictable.
About The Author
Written by
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Victor Fawole, a proficient Web3 content creator and influential figure in social media, excels in delivering the latest trends in the crypto sphere to our audience.
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