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South Korea’s infamous crypto premium has diminished significantly, with bitcoin and ethereum prices now aligning closely with the weighted global averages, albeit with a minor premium. The BTC premium stands at 0.84%, while ETH’s premium is in a similar range.
South Korea’s Crypto Premiums Slides
When BTC reached its all-time high in March, the leading crypto asset had a substantial premium in South Korea on crypto trading platforms like Upbit, Korbit, Bithumb, and Coinone. On March 14, 2024, the day BTC tapped $73,794 per unit, the South Korean premium was about 9.54% higher. Additionally, on that day, the Korean won accounted for 3.35% of bitcoin’s global trading volume. Currently, the premium on exchanges such as Upbit and Bithumb has dropped to below 1%.
At present, data from various crypto market price aggregation sites show the weighted global average for BTC is $69,963 per coin. Meanwhile, on Upbit, BTC trades for $70,555 per coin, reflecting a 0.84% premium. Ethereum (ETH) also carries a similar premium. While 3.35% of BTC trades were settled in won in mid-March, this figure has now decreased to 1.92%. Despite the reduction, the South Korean currency remains the fifth most traded asset with BTC.
The won is the sixth most traded asset with ETH and the seventh highest paired with SOL. Solana (SOL) has a slight premium in South Korea, though less than BTC and ETH, as does ethereum classic (ETC). In fact, 47.48% of all ETC trades over the past day were settled in won. The decline of South Korea’s previously notorious crypto premium indicates a more integrated and consolidated local market, with BTC and ETH prices now closely reflecting global averages. Although the South Korean won is less dominant, it still holds a significant position among the top trading volumes worldwide.
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