The recent electoral success of Donald Trump, a candidate known for pro-cryptocurrency sentiments, has sparked a renewed interest among South Korean traders in alternative digital currencies. This shift echoes patterns observed during the bullish market phase of 2021.
Trading Dynamics on Upbit Post-November 5 Election
In light of Trump’s win, Korean investors are changing their trading strategies, particularly on Upbit, the country’s primary cryptocurrency exchange.
Key takeaways from the trading data:
– Since the election, DOGE, XRP, and XLM have become the most sought-after cryptocurrencies on Upbit.
– Interest is also shifting towards metaverse-related tokens, signaling a budding trend.
Surprisingly, the aftermath of the 2022 Terra/Luna collapse—often thought to have dramatically impacted the South Korean crypto scene—appears to be fading. Currently, the market is buzzing with renewed investment enthusiasm. As Bitcoin (BTC) continues its upward trajectory, traders are actively returning to the smaller altcoins.
A look at the statistics from Coingecko reveals a staggering elevenfold increase in trading volumes on Upbit since the election day on November 5, climbing to an impressive $14.3 billion. This surge is driven primarily by heightened trading activity surrounding XRP and Dogecoin (DOGE), indicating a fresh wave of retail interest.
Market Performance and Investor Behavior
In recent trading trends, the DOGE/KRW pair has secured its position as Upbit’s most traded pair for ten days straight. Additionally, XRP/KRW has frequently made the top trading list six times, and XLM/KRW has recently soared, representing 19% of the platform’s total volume just this past Sunday.
The monthly performance of these cryptocurrencies has been remarkable. DOGE has ascended by 164%, XRP has soared by 188%, and XLM has demonstrated a phenomenal increase of 463%. Despite these impressive climbs, all three tokens are still under their all-time highs from 2021. In a contrasting trend, Bitcoin is nearing its previous record of $100,000, achieving almost a 40% increase per CoinDesk data.
Markus Thielen, founder of 10x Research, observes that since Trump’s electoral victory, tokens like DOGE, XRP, and XLM have overtaken Bitcoin in trading volume. Their substantial returns present investors with a unique opportunity to adapt to shifting market behaviors.
Emerging Opportunities in Metaverse Tokens
Korean investors’ growing interest in affordable cryptocurrencies is now also extending to emerging areas, particularly metaverse tokens like SAND. This sector is enjoying a notable renaissance for the first time in three years.
The SAND/KRW trading pair has notably reached a 24-hour trading volume of $2 billion, making up 14% of Upbit’s overall activity. While SAND has surged by over 200%, reaching 76 cents this month, it remains below its peak value of $8.49 from November 2021. As traders keep a close watch on the rise of metaverse and gaming tokens, it’s worth recalling how similar surges occurred at the crest of the bull market in late 2021.
In summary, the changing landscape of cryptocurrency trading in South Korea, spurred by Trump’s victory, has reinvigorated interest in various altcoins, while the spotlight on metaverse tokens suggests that investors should prepare for potential new opportunities.
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Source: Coindesk.com
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