There’s a new report from the Korean Financial Intelligence Unit (KOFIU). So, this report is about the current situation of the South Korean crypto market from 2021 to date. Hence, the analysis in this post mostly applies to those of the South Korean market. With this in mind, let’s dive into the main content.
Crypto Market Capitalization Picking Up Slowly Since 2022
- 2022 was one of the worst years of the crypto industry because of the massive bear market within this period. So, the Terra Luna and FTX collapse was within this period, further making things worse. Nevertheless, a report from the Korean Financial Intelligence Unit (KOFIU) shows there’s a massive surge in crypto market cap in Q1 of 2023 in comparison to 2022. So, there’s as much as a 46% surge in the Q1 of 2023 compared to 2022.
- This percentage surge puts the valuation of the crypto market around 28.4 trillion won (about $21.08 billion) between January and June 2023. So, this is a massive upgrade to 2022, as there was a market dip of around 19.4 trillion won that year.
Crypto Market Yet to Recover to 2021 Levels
- One of the interpretations of the report from the Korean Financial Intelligence Unit (KOFIU) is that the crypto market is yet to recover to 2021 levels. So, despite the massive surge in the crypto market cap, it is not yet near the levels of 2021. In fact, data shows there is as much as a 48.5% decline in comparison to the 2021 levels. So, at the peak of the crypto market in 2021, there was a capitalization of as much as 55.4 trillion won (about $40.9 billion).
- Despite the increase of the crypto market cap in Q1 of 2023, it is nowhere near the 2021 valuation levels. So, the Korean Financial Intelligence Unit (KOFIU) provided insights into the curation of their report. Their report is dependent on a survey of 26 highly liquid cryptocurrency exchanges and investment firms.
More Details About the Crypto Industry in South Korea
- There were still more insights regarding the state of the South Korean crypto industry from this report. So, there’s an increase in the number of listed assets within the crypto ecosystem of South Korea. This report from KOFIU shows there was an increase in listed assets from 1,362 in 2022 to 1,399 in the first months of 2023. So, there’s also an uptick in the amount of trading volumes. Within the first few months of 2023, there was a rise in trading volume at approximately 2.9 trillion won (about $2.19 billion). Furthermore, there was also a decline in crypto investors from 6.27 million in 2022 to 6.06 million traders in 2023.
Conclusion
A financial body in South Korea, the Korean Financial Intelligence Unit (KOFIU), made a provision of a report on the current crypto market situation. So, this report represents only the South Korean market; there’s an uptick in comparison to the levels of 2022. However, the crypto market is still down in comparison to 2021.
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