In a surprising turn of events, Monero and Ripple price have been increasing at a time when rest of the cryptocurrencies including Bitcoin are on a decline.
According to reports, Monero and Ripple price have surged over the past 24 hours at a time when bitcoin is down over 13 per cent and Ethereum is down by nearly 5 per cent. The direct reason behind this is that cryptocurrency imvestors in South Korea are all pumping their money in Ripple and Monero. The huge inflow of purchase orders from the country have led to a surge in price of both the cryptocurrencies.
Both Ripple and Monero have seen massive trading volume in South Korea with Bithumb alone accounting for more than 35 per cent of the market share of both cryptocurrencies. Korbit and Coinone, also process 10 percent of global Ripple trades, increasing the market share of the BTC-to-KRW trading pair in the global Ripple market to nearly 50 per cent.
As of this writing Ripple is on a high globally and trading at $1.32 – a 5 per cent increase over same time yesterday. In the South Korean cryptocurrency exchanges, Ripple is being traded at around 1,500 KRW or $1.47. Monero is showing a downward trend globally, but on Bithumb it is being traded at $435, which is still much higher than the global average price of $371.
The South Korean cryptocurrency market is upbeat even when globally cryptos do not fair well. Time and again we have noticed a massive premium on South Korean exchanges and one of the primary reasons is the lack of supply.
South Korean cryptocurrency market has been pushing the price of bitcoin and cryptocurrencies like Ripple up for many months. One of the best examples is that bitcoin which is trading at $18,200 on Bithumb even when globally bitcoin is trading at just over $14,400 – meaning a $4000 premium over the global average price.
Cryptocurrency exchanges based in South Korea are very cautious in regards to the cryptocurrencies integrated on the platforms. Qtum for instance, underwent a rigorous process of market evaluation before the Bithumb development team came to a consensus to implement support for the cryptocurrency.
As such, Bithumb, Korbit, and Coinone, three of the largest cryptocurrency exchanges in South Korea, only support a handful of cryptocurrencies, and the cryptocurrencies that the three exchanges support are often traded with high premiums.
The demand for cryptocurrencies in South Korea is higher than any other regulated markets like the US and Japan, primarily due to the tendency of investors in the South Korean finance market to all-in on an asset which others are either invested in or is trending. The South Korean prime minister Lee Nak-yeon described such surge in demand for bitcoin as “cryptocurrency mania.”