The size of the South Korean crypto market has shrunk by 60% in the past six months as retail investors in the crypto-enthusiastic nation have cut spending in the sector. But there is a suggestion that some traders in the country are still dipping their toes in market waters, while others seem to be preparing for bigger moves.
Hanguk Kyungjae reported that the South Korean crypto market capitalization now stands at $16.1 billion, up from $39 billion just six months ago. The data was collected by the Financial Services Commission (FSC).
Crypto-to-crypto transactions were also down 98%, suggesting a sharp decline in trading activity, with fiat-to-crypto/crypto-to-fiat transactions down 58%.
And while investors made some $1.2 trillion in “profits” from their cryptocurrency trading activities in the second half of 2021, that number has fallen to less than $450 million in the past six months. .
Are ant investors preparing for market movement?
But while the data may seem to suggest that retail investors, known as “ants” in South Korean business circles, have given up on the board, it appears they are not yet ready to turn their backs on the market.
Data from the FSC, which has compiled national exchange statistics, shows a sharp increase in the number of people opening bank account-style crypto wallets in recent months. Since the end of 2021, this figure has increased by 24%, with some 7 million such accounts in existence today. This could mean that some people are looking for an opportune time to take the crypto leap.
Data from Cryprice around 11:10 UTC shows that prices on South Korean platforms such as Upbit and Bithumb are still around 0.2-0.3% higher than international exchanges like Binance.
The regulator added that the majority of users on the exchange are between the ages of 30 and 39 and are male.