According to a report by on-chain data firm CryptoQuant, some of the rapid rise in prices of altcoins over the past few months is attributed to South Korean investors, known for their high risk-taking behavior that often triggers speculative frenzies in the tokens.
According to CryptoQuant, the Latest Rise is Due to South Korean Investors
Notable risers include Loom Network's LOOM, whose price increased nearly tenfold in two months, and HIFI, whose prices increased by 6,600% in September alone.
Spot volumes on local exchange Upbit have nearly doubled since September, accounting for more than 85% of Upbit Korea trading volume.
Upbit experienced 82% growth in October compared to September, with trading volume rising from $32.8 billion to $59.8 billion.
This likely created a flywheel effect as rising volumes attracted market makers and investors, who then invested profits to continue buying in a rising market.
CryptoQuant's analyst Bradley Park said the following on the subject:
“For coins listed only on Korean exchanges, it has been popular on exchanges abroad to list futures for these coins if there is a significant increase in trading volume.
Park added that HIFI's reserves on Upbit increased by 27.5%, from 62 million tokens to 82.9 million tokens. This is a sign that South Korea is playing an important role in altcoin rallies, Park said in his statement.
*This is not investment advice.
