The cryptocurrency bull market is back in full swing, and Korean traders are diving in head first. In the wake of Donald Trump’s victory in the U.S. presidential election, trading volume on Upbit, South Korea’s largest crypto exchange, has skyrocketed by over 1,000%. But rather than sticking to market leaders like bitcoin, Korean investors are betting big on smaller altcoins.
Altcoin Mania Returns
Over the past few weeks, cryptocurrencies like XRP, Dogecoin (DOGE), and Stellar (XLM) have consistently been among the most traded pairs on Upbit, often surpassing bitcoin in 24-hour volume. These tokens have seen triple-digit percentage gains, far outpacing bitcoin’s already impressive 40% rise to new all-time highs near $100,000.
The surge in altcoin trading is reminiscent of the Kimchi premium phenomenon that gripped Korean markets during the 2021 crypto bull run. At that time, the prices of bitcoin and other top cryptocurrencies were significantly higher on Korean exchanges compared to global averages, driven by intense local demand.
The rotation into smaller altcoins while simply monitoring bitcoin’s moves would have generated substantial alpha for Korean traders in recent weeks.
– Markus Thielen, 10x Research
Metaverse Tokens in the Spotlight
Korean investors’ appetite for speculation is now extending beyond major altcoins and into the realm of metaverse-related cryptocurrencies. Tokens like The Sandbox (SAND), which powers a decentralized virtual gaming world, are seeing trading volumes surge on Upbit.
SAND’s price has tripled in November, yet still remains nearly 90% below its 2021 peak. The resurgence of interest in metaverse and gaming tokens is notable, as these assets led the market in the final stages of the previous bull cycle before collapsing spectacularly.
| Token | Upbit 24h Volume (USD) | % of Total Volume |
| SAND | $2 billion | 14.1% |
| XLM | $2.7 billion | 19.0% |
| DOGE | $2.2 billion | 15.7% |
A Sign of Froth?
While the surge in altcoin and metaverse token trading has been highly profitable for many Korean investors, some analysts caution that it may indicate dangerous levels of market froth. Historically, retail traders piling into obscure or highly speculative assets has often signaled that a crypto bull market is entering its late stages.
Traders should keep a close eye on the metaverse and gaming token rally. The last time these types of assets outperformed, it marked the peak of the 2021 crypto bull market.
– Anonymous Crypto Market Analyst
Despite these warnings, the current bull market appears to have room to run. Bitcoin’s recent surge has been supported by a variety of positive catalysts, including increased institutional adoption, the escalating U.S.-China trade war, and expectations of further monetary stimulus. As long as these macro trends remain in place, any corrections in altcoins and metaverse tokens may prove short-lived.
Chasing Returns
For now, Korean traders seem content to ride the altcoin wave as far as it will take them. The lure of fast profits is simply too strong to ignore, especially with memories of the massive gains from early 2021 still fresh.
Whether driven by greed, a fear of missing out, or a genuine belief in the long-term potential of digital assets, Koreans have once again proven themselves to be among the world’s most enthusiastic cryptocurrency adopters. As the saying goes, history may not repeat itself, but it often rhymes. Korean traders will be hoping this latest altcoin frenzy has a happier ending than last time.
