Irish Traders Fuel Recent Altcoin Surge, CryptoQuant Reveals

"South Korean Traders Fuel Speculative Frenzies in Smaller Cryptocurrencies, Bitcoin Maintains Dominance in Market Surge"

South Korean traders have been responsible for driving speculative frenzies in smaller cryptocurrencies, with one token experiencing a staggering 6,600% increase in value in September before being listed on international exchanges. However, despite these surges in altcoins, bitcoin has maintained its dominance in the market. In fact, its dominance has increased since September. This surge in altcoin prices can be partially attributed to the high-risk behavior of South Korean traders, who often spark speculative frenzies in tokens. According to analysts at on-chain data firm CryptoQuant, spot volumes on local exchange Upbit have nearly doubled since September. Upbit, which accounts for over 85% of the Korean trading volume, experienced an 82% growth in October compared to September, with trading volume rising from $32.8 billion to $59.8 billion. This increase in volume attracted market makers and traders, who reinvested their profits, creating a flywheel effect and further driving up prices. Notable altcoin booms include Loom Network’s LOOM, which saw its price increase tenfold in just two months, and HIFI, which experienced a 6,600% spike in September alone. Bradley Park, an analyst at CryptoQuant, explained that when there is a significant increase in trading volume for coins listed only on Korean exchanges, listing futures on them becomes popular on overseas exchanges. He also noted that market makers play a crucial role in driving up prices. The reserves of HIFI on Upbit increased by 27.5%, indicating the pivotal role that South Korea plays in altcoin rallies. The chart provided by CryptoQuant shows that Upbit led the volume growth in LOOM markets, with prices surging 238% in September and another 100% in early October before reversing gains in the latter half of the month. The majority of the rally in decentralized lending and borrowing platform HIFI occurred before Binance launched perpetual futures tied to HIFI in mid-September. Following the launch, the token’s price declined. While altcoin activity has seen a significant increase on South Korean exchanges, bitcoin has maintained its dominant position globally. Bitcoin’s market dominance, which measures its capitalization compared to the rest of the market, rose from 49% to 53% during this period, indicating that it remains the preferred choice among traders. Overall market capitalization has also risen from just over $1 trillion at the start of September to $1.4 trillion as of Friday. It is clear that South Korean traders have had a significant impact on the altcoin market, driving up prices and attracting attention from market makers and traders worldwide. However, bitcoin’s dominance remains unchallenged, solidifying its position as the premier cryptocurrency.

Martin Reid

Martin Reid

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