South Korea’s Retail Traders Power Ether—But Is the Rally Sustainable?

South Korean retail investors are increasingly shaping Ether’s market momentum, driving not only its price growth but also the expansion of corporate Ether treasury holdings, according to industry experts.

As Ethereum trades just 7% below its all-time high, the influence of the Korean market on global crypto trends has become impossible to ignore.

Samson Mow, CEO of Jan3, emphasized via X that roughly $6 billion in South Korean retail capital is the “only thing” sustaining Ether’s current price levels and the valuations of treasury companies.

“ETH influencers have been flying to South Korea just to market to retail. These investors have zero idea about the ETHBTC chart and think they're buying the next strategy play. This won’t end well.”

Korean investors primarily access Ether through the country’s leading centralized exchanges, Upbit and Bithumb. CoinGlass data shows Upbit ranked as the tenth largest CEX for Ether futures, with $1.29 billion in weekly trading volume—highlighting the outsized influence of Korean futures activity on global prices.

The Kimchi Premium, Proof of Local Appetite

Ether’s so-called “Kimchi premium,” when prices on South Korean exchanges exceed global levels, further underscores robust local demand.

CryptoQuant data shows the Kimchi premium jumped to 1.93 on Sunday, compared with -2.06 in mid-July when Ether traded below $2,959, signaling heightened retail participation.

Marcin Kazmierczak, co-founder of RedStone, confirmed that Korean retail investors play a significant role in the market but cautioned that their influence represents only a fraction of Ether’s overall momentum.

“Characterizing them as a primary support for Ethereum significantly understates the network’s diverse global capital base, which includes substantial U.S. institutional investments through ETFs, corporate treasuries, and the vast DeFi ecosystem that relies on ETH.”

Kazmierczak emphasized that Ethereum’s strength lies in its “borderless nature,” combining local Korean activity with global institutional engagement.

Debate Over Ether’s Treasury Thesis

The rising role of Ether treasury companies has sparked debate about whether the price rally is sustainable. In September, Mechanism Capital founder Andrew Kang openly challenged BitMine founder Tom Lee’s bullish thesis, which argued that Ether’s value would continue growing through stablecoins and real-world asset tokenization.

https://t.co/HM01BJJwKB
— Andrew Kang (@Rewkang) September 24, 2025
a

Kang countered that the thesis overstated Ether’s real accrual value and noted

“Ethereum’s valuation comes primarily from financial illiteracy, which, to be fair, can create a decently large market cap. The valuation that can be derived from financial illiteracy is not infinite.”

Kang also added that while global macro liquidity has helped sustain Ether’s performance, major organizational changes are needed to avoid extended periods of underperformance.

Who’s Right About Ether’s Growth?

Evaluating the three perspectives, it’s clear that South Korean retail investors are a powerful short-term driver of Ether’s price, as Mow suggests. However, Kazmierczak’s reminder of Ethereum’s broad, global capital base tempers the narrative, highlighting that Korean retail activity alone cannot sustain long-term growth.

Kang’s critique also rings true: relying on financial illiteracy and temporary retail enthusiasm is risky, and structural improvements are essential for Ether to maintain its upward trajectory.

In my view, the reality lies somewhere in between. South Korean retail capital provides a strong near-term boost, but without continued institutional adoption, robust treasury strategies, and greater tokenomics transparency, the current momentum may be fragile.

Ether’s long-term growth will ultimately depend on balancing enthusiastic retail demand with deep, sustainable market infrastructure.