South Korea Leads East Asia in Crypto Trading Volume, Fueled by Kimchi Premium: Chainalysis

South Korea Leads East Asia in Crypto Trading Volume, Fueled by Kimchi Premium: Chainalysis

South Korea Surges Ahead in Crypto Trading According to blockchain data analytics firm Chainalysis, South Korea has emerged as the leader in East Asian crypto trading volume this year. This dominance is largely attributed to the persistent "kimchi premium," a phenomenon where crypto assets command higher prices on South Korean exchanges compared to their global counterparts. Kimchi Premium: A Lucrative Market Opportunity The kimchi premium reflects strong local demand and heightened institutional trading activity. Institutional investors are leveraging this discrepancy by purchasing cryptocurrencies at lower global prices and reselling them at higher rates on Korean exchanges, contributing to the premium. This practice has further fueled market volume. Institutional Influence on the Kimchi Premium Chainalysis highlights the significant role of institutional investors in shaping the kimchi premium. Their large-scale trading operations have inflated the price differential between domestic and international exchanges. This surge in South Korea's crypto trading volume underscores the country's vibrant digital asset market. The kimchi premium continues to attract investors, both locally and globally, further solidifying South Korea's position as a major crypto trading hub.