The number of cryptocurrency investors in South Korea has grown significantly, reaching 7.78 million in the first half of 2024 an increase of 21% from 6.45 million in the second half of 2023. This rise in investor participation has propelled the cumulative operating profits of the country’s top 21 centralized exchanges (CEXs) to over 5.9 trillion won (approximately $4.2 billion), marking a remarkable year-on-year increase of 106%, according to data from the Financial Services Commission.
Despite the growing number of investors, the average South Korean crypto portfolio remains modest, with over 67% of investors holding less than $362 worth of digital assets. Only 10%, or about 780,000 individuals, possess portfolios exceeding $7,254.
The investor demographic is predominantly male, with more than 68% identifying as male, particularly among those over 30, who account for 5.28 million of the total. There are approximately 850,000 male investors aged 50 and older.
In terms of asset allocation, over 37% of holdings are in Bitcoin, followed by 11% in Ether, 10.6% in XRP, 2.8% in Dogecoin, and 2.7% in Ethereum Classic.
The influx of retail investors is seen as a positive sign for a potential bull market, as their investments may contribute to rising prices for major cryptocurrencies like Bitcoin, which recently approached an all-time high. On October 29, Bitcoin climbed above $73,600, just $200 shy of its record.
However, some analysts caution that Bitcoin’s recent price movements could be more influenced by political factors, such as the upcoming U.S. presidential elections, rather than solid macroeconomic fundamentals.
Overall, the expanding crypto landscape in South Korea reflects a growing interest in digital assets, though many investors still maintain relatively small allocations.
