The South Korean virtual asset market is experiencing explosive rise

In July, the South Korean virtual asset market experienced a strong trend of "rising volume and price." As of 8 PM on July 24, the top two cryptocurrency exchanges in South Korea saw significant rises in their 24-hour trading volumes. The first-ranked exchange's 24-hour trading volume exceeded $10.2 billion, with an increase of 94.5%; the second-ranked exchange's 24-hour trading volume surpassed $3.2 billion, with an increase of 61.5%.

The precursor to this wave of enthusiasm was already evident when liquidity accumulated at the bottom of the market. Data shows that from July 13 to 19, the trading volume of stablecoins on South Korea's five major cryptocurrency exchanges reached 2.226 trillion won (approximately 1.62 billion USD).

The trading enthusiasm of Korean investors began to show on July 11. On that day, the price of XRP tokens rose from $2.60 to $3.00 within a few hours, with a total net buying pressure of $45 million in the spot market, 70% of which came from the largest exchange in Korea. This surge was almost entirely driven by Korean buying.

XRP is one of the favorite virtual assets among Korean investors, accounting for about 15% of the global trading volume. On July 18, XRP broke the $3.6 mark, reaching a new high in six months. As of July 24, the XRP price was around $3.16, with a 24-hour trading volume of $2.28 billion on the largest exchange in Korea, firmly maintaining its position as the most popular asset on the platform.

On July 23, the SAHARA token experienced a second wave of excitement, with a single-day peak rise of 86%. Today, the enthusiasm of Korean investors for SAHARA remains strong. As of 8 PM on July 24, its trading volume in the past 24 hours reached $2.3 billion, with nearly half coming from Korea's two major exchanges.

After the SAHARA token broke through $0.16 to reach a historic high and began to pull back, the NEWT token surged. As of 8 PM on July 24, NEWT's 24-hour rise exceeded 70%, with a trading volume of $1.78 billion, more than 60% of which came from Korea's two major exchanges, fully reflecting the concentration and explosive power of Korean retail investors.

In addition to the above-mentioned tokens, South Korean investors have also driven the rise of several tokens such as Hyperlane, Babylon, HUMA, LISTA, and MERL.

Against the backdrop of Bitcoin reaching an all-time high, ETH rebounding, and an improving regulatory environment, the pace of new listings at South Korean exchanges has also noticeably accelerated. As of July 21, the top five virtual asset exchanges in South Korea have listed a total of 229 KRW trading pairs, accounting for 85.44% of last year's total. If this trend continues, some exchanges may launch the most cryptocurrencies in nearly five years this year.

However, the intense influx of funds and rapid rotation also come with significant volatility risks. XRP and SAHARA have experienced short-term corrections of over 10%, with concentrated contract liquidations. If liquidity suddenly reverses, prices will face severe fluctuations.

Analysts warn that the behavior of South Korean investors may change dramatically during the altcoin frenzy. Against the backdrop of a surge in new capital inflows, South Korean investors' enthusiasm for altcoins often surpasses that of overseas markets. In small investments, the FOMO mentality plays a key role and can sometimes pose significant risks to investors.