Cardano's Korean Wave: Trading Volume Explodes

Cardano (ADA) is experiencing a surge in popularity among South Korean crypto traders, leading to a significant spike in trading volume. Data indicates that ADA trading volume on major South Korean exchanges is almost double that of Coinbase within the last 24 hours. This discrepancy, aside from XRP, is unusual.

Key Takeaways

• Korean Demand: South Korean crypto traders are showing strong interest in Cardano, driving up trading volume.
• Price Surge: ADA has outperformed Bitcoin and Ethereum in the last two weeks, gaining approximately 17%.
• Whale Activity: Onchain data suggests increased activity from large Cardano holders (whales).
• ETF Speculation: Cardano is being considered as a potential candidate for a future altcoin ETF by major investment funds. However, note that no ETF is guaranteed.

What's Driving the Demand?

While the exact reasons remain speculative, several factors may be contributing to this surge:

• Local Market Dynamics: South Korean exchanges often see increased trading activity in specific altcoins, and Cardano appears to be the current focus.
• Regulatory Barriers: South Korean regulations restrict foreign participation on local exchanges, intensifying the impact of local demand.
• Whale Accumulation: Recent data indicates whales have been increasing their ADA holdings. Transactions over $100,000 are at 5-month highs. More than $28 million worth of Cardano added to whale wallets.
• Altcoin ETF Buzz: Recent buzz about potential ETF approvals for altcoins, including Cardano, has helped the bull momentum.

While global participation also exists, South Korean regulations make the effect of local demand more intense. Crypto trading accounts must be tied to domestic bank information and strong KYC is enforced.