Crypto trading volume plunges to yearly low in S. Korea

(Reuters/Yonhap)

South Korea’s cryptocurrency market has slipped into a prolonged slump, with daily trading volume plunging to around 1 trillion won ($680.3 million), down sharply from the 7 trillion to 8 trillion won range seen previously, marking the lowest level this year.

According to CoinGecko, the combined 24-hour trading volume at the country’s five major crypto exchanges—Upbit, Bithumb, Coinone, Gopax and Korbit—stood at $1.12 billion on Sunday. The figure represents this year’s low and is roughly one-sixteenth of the year’s peak of $17.68 billion recorded on Jan. 9.

This means trading volume has dropped 93.68 percent in about a year.

As weakness in the crypto market drags on, investment funds appear to be flowing out to other assets such as equities. The total market capitalization of cryptocurrencies fell below the $3 trillion mark within 12 days.

Barclays noted in its recent year-end report that there are currently no clear catalysts to reignite demand, warning that market growth is likely to remain subdued unless major drivers—such as last year’s approval of spot Bitcoin exchange-traded funds or the election of U.S. President Donald Trump—emerge once again.