South Korea's well-known crypto premium has significantly decreased, with bitcoin and ethereum prices now aligning closely with the weighted global averages, albeit with a small premium. The premium for BTC is at 0.84%, while ETH's premium falls within a similar range.
South Korea's Crypto Premiums Decline
When BTC reached its all-time high in March, the leading cryptocurrency had a significant premium in South Korea on crypto trading platforms such as Upbit, Korbit, Bithumb, and Coinone. On March 14, 2024, when BTC reached $73,794 per unit, the South Korean premium was approximately 9.54% higher. Furthermore, on that day, the Korean won represented 3.35% of bitcoin's global trading volume. Currently, the premium on exchanges like Upbit and Bithumb has dropped to below 1%.
Currently, data from various crypto market price aggregation sites indicate that the weighted global average for BTC is $69,963 per coin. Meanwhile, on Upbit, BTC is traded at $70,555 per coin, reflecting a 0.84% premium. Ethereum (ETH) also carries a similar premium. While 3.35% of BTC trades were settled in won in mid-March, this figure has now decreased to 1.92%. Despite the decrease, the South Korean currency remains the fifth most traded asset with BTC.
The won is the sixth most traded asset with ETH and the seventh highest when paired with SOL. Solana (SOL) has a slight premium in South Korea, although it is less than BTC and ETH, as does ethereum classic (ETC). In fact, 47.48% of all ETC trades in the past day were settled in won. The decline of South Korea's previously notorious crypto premium indicates a more integrated and consolidated local market, with BTC and ETH prices now closely reflecting global averages. Although the South Korean won is less dominant, it still holds a significant position among the top trading volumes worldwide.
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