The recent upsurge in prices of altcoins can be attributed to South Korean traders.
The recent upsurge in prices of altcoins can be attributed to South Korean traders, renowned for their inclination towards high-risk behaviors and their ability to ignite speculative frenzies. On-chain data firm CryptoQuant has reported that spot volumes on the popular local exchange Upbit have almost doubled since September, with an 82% growth in October compared to the previous month. This substantial increase in trading volume on Upbit has attracted market makers and traders, resulting in a self-reinforcing effect where profits are reinvested in a rising market.
Remarkable surges have been observed in certain altcoins, such as Loom Network's LOOM, which witnessed a price increase of approximately tenfold over two months, and HIFI, whose prices skyrocketed by an astounding 6,600% in September alone. Bradley Park, an analyst at CryptoQuant, highlighted the significance of South Korea in driving altcoin rallies, noting that the reserves of HIFI on Upbit grew by 27.5% during this period.
Although altcoin activity has intensified on South Korean exchanges, Bitcoin has maintained its dominant position on the global stage. Bitcoin's market dominance, which measures its capitalization relative to the rest of the market, has risen from 49% to 53% during this timeframe, as investors await the SEC’s approval of spot Bitcoin ETF applications.
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