Chainalysis: Rising premium index drives growth in South Korea’s crypto market

According to a recent report from Chainalysis, South Korea’s cryptocurrency market is showing growth, driven primarily by a rise in the Korea Premium Index. The report highlights that local demand, institutional trading, and unique market conditions in the country are causing crypto prices on local exchanges to exceed global averages. The Korea Premium Index measures the spread between the price of cryptocurrencies such as BTC, ETH, and altcoins on Korean exchanges and global markets. The Chainalysis report notes that the sharp rise in the index can be seen in the “extent to which Korean traders are paying above market prices for digital assets.” This premium is at an all-time high during times of market uncertainty and volatility, prompting retail and institutional investors to take advantage of potential gains. The report further highlights that “South Koreans frequently use local exchanges” for fund management, and the amount transferred from local exchanges to global exchanges is “highly correlated” with the premium. (Cointelegraph)