South Korean Crypto Exchanges Hit Record-Breaking $34 Billion Volume Following Market Shakeout

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As a seasoned analyst with years of experience navigating volatile markets, I find myself intrigued by the recent events unfolding in South Korea’s crypto market. The dramatic drop in cryptocurrency prices following the emergency martial law declaration was indeed a stark reminder of the market’s sensitivity to geopolitical events. However, what followed was equally fascinating – a record-breaking daily trading volume on local exchanges for the second consecutive day, nearly doubling the previous milestone.

Yesterday, an emergency declaration of martial law in South Korea led to a sharp decline in the country’s crypto market, triggering a large-scale selling frenzy and pushing the prices of most cryptocurrencies down to their lowest levels for the month.

Following the turbulence, local trading platforms experienced an unprecedented two-day streak of the highest ever daily trade volumes. This new record nearly doubled the previously set benchmark.

South Korea’s Crypto Trading Volume Sees Record Day

On Tuesday, Bitcoin (BTC), Ethereum (ETH), XRP (XRP), and many other cryptocurrencies experienced a significant price decline on South Korean cryptocurrency exchanges, triggered by the announcement of the first martial law declaration in South Korea in the past 44 years.

In South Korean cryptocurrency markets, the value of Bitcoin plummeted sharply against the South Korean won, decreasing approximately 33% to about 88.26 million RWM (which is equivalent to around $62,000 USD) on Upbit, the country’s largest digital asset exchange.

In a similar vein, Ethereum dropped by around 38%, trading at roughly 3.12 million Korean Won (KRW) which is equivalent to about $2,200. On the other hand, XRP experienced the most significant dip among the top three cryptocurrencies, falling by approximately 60% from its 4,000 KRW peak down to around 1,623 KRW, or roughly $1.23.

In the midst of the market turbulence, whales transferred more than 163 million USDT into Upbit, possibly seeking chances to buy at low prices. Interestingly, local cryptocurrency exchange platforms saw a significant surge in trading volume, marking their second record-high transaction amount this week.

On December 3, Upbit reported an impressive trading volume of approximately $27.25 billion, with Bithumb coming in second at $6 billion. Meanwhile, Coinone and Korbit registered daily volumes of around $531 million and $192 million respectively. In total, these exchanges saw over $34 billion traded within a 24-hour period, marking an 88% increase compared to the $18 billion achieved on December 2.

On a recent Monday, it was disclosed by Markus Thielen, the head of 10x Research, that the trading volume of cryptocurrencies in South Korea had reached one of its second-highest points this year. This figure exceeded the $14 billion worth of trades made in the local stock market by approximately a fifth (22%).

According to recent findings, trading volumes related to retail transactions in South Korea experienced a significant spike last Monday. In this surge, XRP took the lead with a whopping $6.3 billion traded, trailed closely by Dogecoin at $1.6 billion and Stellar at $1.3 billion.

Thielen pointed out that these fast-moving digital currencies are primarily fueled by individual investors, who are profiting from and amplifying trends based on momentum.

The 6-Hour Martial Law Declaration

As a researcher reporting events, I found myself captivated by President Yoon Suk Yeol’s live TV address, an announcement that sent ripples of apprehension through Korean society during the subsequent hours. During this briefing, he leveled accusations against South Korea’s opposition Democratic Party, a group holding a majority in the National Assembly, claiming they harbored sympathies towards North Korea and were involved in activities counter to our nation’s best interests.

In simpler terms, declaring martial law means that the military takes over from the civilian government, imposing restrictions on activities like free speech, demonstrations, and other civil liberties. This move can also lead to modifications in the powers held by governments or courts, as well as a system where warrants are issued based on specific laws.

Yoon asserted that he had implemented steps to eliminate supporters of North Korea and uphold the democratic constitutional system. However, the Democratic Party leader, Lee Jae-Myung, declared their intention to challenge this order according to Korean law, and broadcast himself scaling the gates of the National Assembly on a live stream.

It’s worth noting that, under Korean law, the president must lift the emergency martial law if the parliament requests it with a majority vote from its members. About three hours after the declaration, 190 present parliament members out of the 300 lawmakers voted against the martial law, which was accepted by the President a few hours later.

After the market collapse, many cryptocurrencies have rebounded and are now being traded above their prices before the martial law was declared. Currently, one Bitcoin is being traded at approximately 135.2 million Korean Won, which is roughly equivalent to $95,400.

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2024-12-05 10:12