South Korean Crypto Exchanges, Kimchi Coins Losing Out to International Rivals – Report

Core Insights - South Koreans are increasingly using overseas crypto exchanges, leading to a decline in trading volumes on domestic platforms [1][2] - The overall crypto market's upward trend is slowing down after a strong finish in 2024 [2] Trading Volume and Market Trends - The amount of money and crypto transferred to overseas platforms reached 78.9 trillion won ($56.2 billion), marking a 4% increase [2] - The domestic crypto market capitalization dropped by 14%, while overseas market cap figures fell by only 7% [4] User Engagement and Demographics - User numbers in the South Korean crypto market grew to 10.77 million, an 11% increase from the end of the previous year [3] - Most crypto traders are aged 30-39, accounting for 27.9% of the total user base [3] Market Dynamics - The size of the crypto-to-fiat market decreased by 12%, while the crypto-to-crypto market surged by 286% [3] - Deposits in domestic exchanges fell by 42% to 6.2 trillion won ($4.4 billion), indicating a significant decrease in standby trading funds [5] Trading Activity and Risks - The number of trading pairs on exchanges increased dramatically from 181 to 1,538, with 43% of these coins having a market capitalization of less than KRW 100 million ($71,232) [6] - Customer withdrawals grew by 5%, reaching KRW 101.6 trillion ($72.4 billion) [7]