Chainalysis Report: South Korea’s Crypto Market Growth Fueled by Rise in Korea Premium Index
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
South Korea’s cryptocurrency market has experienced notable growth thanks to the increasing Korea Premium Index, according to a recent report by blockchain analysis firm Chainalysis.
The Korea Premium Index measures the price difference for major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and various altcoins traded on local platforms compared to international exchanges.
Chainalysis noted that local demand, coupled with institutional trading and South Korea’s unique market conditions, has caused cryptocurrency prices on domestic exchanges to rise above global averages.
The report said the sharp increase in the Korea Premium Index reflects how South Korean traders are paying significantly higher prices for digital assets during periods of market volatility.
Both retail and institutional investors appear to be taking advantage of these price discrepancies, seeking potential gains during uncertain times.
A key finding from the report is that institutional investors play a crucial role in driving the Korea Premium Index.
Large-scale transactions by institutional participants contribute to the premium by moving significant volumes of cryptocurrency.
“Institutional activity is a significant driver of the price discrepancies,” the report said.
These investors often engage in arbitrage, buying crypto at lower prices from global exchanges and selling them at higher prices on South Korean platforms.
South Korea’s crypto market is booming!
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