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Dogecoin volume in Korea exceeded that of its entire stock market yesterday

South Korea Crypto exchanges processed more Dogecoin yesterday is traded as the average volume of stocks traded on the country’s traditional stock exchanges, data show from multiple sources.

Dogecoin high

According to local news agency Handkerchief, the average daily trading volume of the Korea Composite Stock Price Index (KOSPI) – a representative index of Korean companies – was only $ 9 billion in April 2021.

miscellaneous relevant reports also show that warehouse volume in Korea peaked at 12 trillion won ($ 10 billion) in a few months last year.

But the meme frenzy dwarfed that yesterday. According to data from the CoinGecko market tool, Dogecoin volume on the Korean exchange UpBit alone surpassed over $ 16 billion. On the flip side, smaller exchanges like GoPax and Huobi Korea made over $ 50 million and $ 20 million, respectively.

However, how much of that volume was due to “wash” trading – the use of trading bots to inflate trading volume without actual demand – remains unknown.

The Dogecoin volumes were also larger than the Korean forex numbers. “Korean currencies cost $ 7-8 billion a month, which is $ 200-300 million a day. Doge’s trading volume on Upbit alone was $ 13 billion last night, so yeah, Doge’s bigger, ”tweeted Doo Wan Nam, the Seoul-based director of business development for MakerDAO Asia.

Korean FX is like $ 7-8 billion a month, so $ 200-300 million a day … Doge’s trading volume on Upbit alone was 13 billion last night, so yeah, Doge’s bigger

– Doo (@DooWanNam) May 5, 2021

Indeed, a local report Quoted by Nam, showed that forex volume has remained between $ 5 billion and $ 8 billion over the past few months.

Why crypto over stocks?

As KryptoSlate previously reported, the high volumes of crypto trading by Korean investors are the result of high risk, high return games that could bring them higher returns on capital in a short period of time compared to the low returns offered by banks and traditional financial institutions.

Traditional “stock exchange funds” or other market-based indices are already showing a steady decline in the country.

Data from the country’s Financial Investment Association and the Financial Services Commission, the report said, showed that cash inflows fell by more from 74 trillion won in January 2021 to 63 trillion won at the end of last month – a difference of over 10 trillion won $ 8.8 billion). The same period showed higher than usual inflows for crypto exchanges.

The data also showed that by the first two months of 2021, over 445 trillion won ($ 392 billion) of cryptocurrencies were traded on local exchanges – an amount higher than the total trading volume last year ( 356 trillion won or $ 314 billion). .

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