Bitcoin has continued to fluctuate around 100 million won per unit. At the same time, the value of stablecoin transactions in Korea has quadrupled since the start of the year. The biggest impact recently appears to be Covit’s USDC trading volume on domestic exchanges. On the 9th, Covit changed the USDC trading format from weekly to daily, and trading activity has surged since then.
Covit’s market share rose to around 10%. Bitcoin prices have plunged 18% this month, while the derivatives market saw liquidations totaling about $2.5 billion on the 1st, well above the $1.6 billion seen during the FTX crisis. Meanwhile, Bitcoin fell below 100 million won again four days after the 7th on Upbit, the largest digital asset exchange in Korea. In general, the rise in domestic stablecoin transactions in a situation where the market is plunging is interpreted as a demand for deposits to prevent liquidation by derivatives investors using overseas digital asset exchanges.
Bitcoin has fluctuated around 100 million won per unit while Korea’s stablecoin activity climbs sharply. The total stablecoin transaction value across Korea’s top exchanges reached $725.97 million on the 10th, up about 4.13x from January 1, driven by Covit’s USDC trading on domestic platforms after the shift to daily trading on the 9th. Covit’s domestic market share rose to around 10%. Bitcoin prices have fallen 18% this month, and the derivatives market saw liquidations totaling about $2.5 billion on the 1st.
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