In a stunning turn of events, the “Land of the Morning Calm” is anything but tranquil as South Korean crypto investors dive headfirst into the Dogecoin trading mania. The meme coin’s meteoric price surge, fueled by Donald Trump’s U.S. presidential election victory and Elon Musk’s appointment to lead the newly-formed “Department of Government Efficiency” (D.O.G.E), has ignited an unprecedented buying frenzy on the nation’s top exchanges, Upbit and Bithumb.
Dogecoin Prices Skyrocket as Korean Demand Soars
Since President-elect Trump’s triumph just a week ago, Dogecoin’s value has catapulted an astonishing 78%, with the altcoin’s trading volume on Upbit and Bithumb reaching a staggering $8 billion in the past 24 hours alone. To put this into perspective, that figure equates to a jaw-dropping 57% of the total market capitalization of all stocks traded in South Korea.
“DOGE has become the undisputed king of cryptocurrencies on both Upbit and Bithumb since Trump’s win, with its trading volume dwarfing all other digital assets combined,” a source close to the exchanges revealed.
The meme coin’s popularity has driven a noticeable price premium on the two Korean crypto giants compared to global heavyweight Binance. At the time of writing, DOGE traded 1.5% higher on the KRW-denominated pairs of Upbit and Bithumb than on Binance’s USDT market, marking the most significant price differential in three months.
Musk’s D.O.G.E Department Fuels Investor Excitement
The Dogecoin craze has been further amplified by Elon Musk’s grandiose plans for the D.O.G.E department within the incoming Trump administration. The billionaire tech mogul and long-time crypto advocate intends to establish this new government wing as a tribute to the beloved meme cryptocurrency, sending investor enthusiasm into overdrive.
On Tuesday, President-elect Trump named Musk and biotech entrepreneur Vivek Ramaswamy as the leaders of this novel department, reinforcing his pro-crypto stance and determination to embrace the digital asset class.
Koreans Bet Big on $1 Dogecoin Target
As the Dogecoin buying spree intensifies, Korean traders are increasingly turning to the options market to capitalize on the meme coin’s anticipated ascent to the $1 threshold. PowerTrade, a derivatives exchange specializing in altcoin-tied contracts, has witnessed a surge in DOGE call option purchases, with strike prices set at $1 for January and December expiries.
“We’ve seen a client snap up 10,000 DOGE call options with a $1 strike price expiring on January 25th, paying $0.058 per contract. This is a clear indication that Korean traders are betting big on Dogecoin smashing through the $1 barrier in the coming months,” a PowerTrade spokesperson disclosed.
A Tempered Frenzy: Lower Premiums Than Previous Peaks
Despite the palpable excitement gripping the Korean crypto community, the current Dogecoin premiums on local exchanges are markedly lower than the heights reached during previous market peaks. The 1.5% price differential pales in comparison to the double-digit premiums witnessed in early 2021, suggesting that while investor enthusiasm is undoubtedly high, the speculative fervor has yet to reach the frenzied levels seen in past bull markets.
This tempered approach may indicate a maturing market, as Korean traders navigate the Dogecoin mania with a more measured strategy. However, with prices continuing to climb and options traders betting heavily on the $1 milestone, it remains to be seen whether this relative restraint will persist or give way to a full-blown speculative fever pitch.
The Future of Dogecoin: To the Moon and Beyond?
As South Korea rides the Dogecoin wave, the meme coin’s trajectory appears to be pointing skyward. With the backing of two crypto-friendly heavyweights – President-elect Trump and Elon Musk – and the establishment of the D.O.G.E department, the stage seems set for Dogecoin to reach new heights.
However, the crypto market is notoriously unpredictable, and even the most fervent supporter would be wise to approach the Dogecoin craze with a measure of caution. While the Korean trading frenzy and the political tailwinds are undoubtedly promising, the meme coin’s long-term prospects remain uncertain.
As the world watches South Korea’s Dogecoin mania unfold, one thing is clear: the “Land of the Morning Calm” has awakened to the call of the meme coin, and its investors are determined to ride this rocket ship to the moon – and perhaps even beyond. Only time will tell whether this journey will end in triumph or tears, but for now, the Dogecoin dream burns brightly in the hearts of Korean crypto enthusiasts.
