The transaction value of domestic coin exchanges plunged as lateral guarantees continued in the virtual asset market.

The transaction value of domestic coin exchanges plunged as lateral guarantees continued in the virtual asset market.

The transaction value of domestic coin exchanges has plunged rapidly as lateral guarantees continue in the virtual asset market. In particular, the sharp decrease in transaction value compared to a global exchange shows that domestic investors have left faster.

According to CoinGecko on the 29th, the transaction value of the five major exchanges in Korea (Upbit, Bithumb, Coinone, Cobbit, and GoFox) decreased by about 41.12% this year as of the 28th.

At the end of last year, the transaction value of the five major exchanges reached $6,766.86 billion. Such transaction value decreased to $3,983.97 billion on the 28th.

On the other hand, in the case of Binance, the world’s No. 1 exchange, the transaction value decreased by only 17.79% during the same period. Compared to Binance, the decline in transaction value on domestic exchanges is more than double.

Kimchi premium (based on Upbit and Binance), which shows the difference in bitcoin prices in Korea and overseas, also recently recorded negative.

On the 28th, the kimchi premium once fell to -0.53%. It rose again to 0.22% as of 9 a.m. on the 29th, but is still low compared to 1.12% recorded at the end of last year. In February, the kimchi premium soared to around 10%.

The rapid decline in kimchi premium shows less interest in the virtual asset market in Korea compared to the global market. In general, when domestic investors’ demand is greater than that of foreign investors, the kimchi premium also rises.

The reason why interest in virtual assets has dropped significantly in Korea is that altcoins are not using their power this year.

According to TradingView, Bitcoin Dominance, which shows the proportion of Bitcoin among the total virtual asset market capitalization, was 64.30% (as of the 29th), up about 10.72% from the beginning of the year. The high Bitcoin Dominance shows that the market price of altcoins is depressed compared to bitcoin.

However, domestic investors are buying altcoins at a higher proportion than bitcoin.

According to a survey of virtual asset operators by the Financial Services Commission’s Financial Information Analysis Institute (FIU) in the first half of last year, Bitcoin’s market capitalization in the global virtual asset market was 54.4%, but its share in the domestic market was lower at 37.2%.

According to the FIU survey, the proportion of altcoins other than Bitcoin was 45.6% in the global market, while it was higher at 62.8% in the domestic market.

Recently, there are increasing expectations that the participation of corporations and institutions in the virtual asset market will be more active.

Among the key issues that can affect the cryptocurrency market in the second half of the year are the launch of altcoin-based Spot Exchange Traded Funds (ETFs), which have been actively discussed in the U.S.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) rejected an application for an ETF linked to bitcoin futures prices filed by investment firm WisdomTree.

However, institutions such as Fidelity and Shapeshift are reportedly preparing to apply for new products.

In addition, there are also reports that the SEC is considering an application for an ETF linked to major altcoins such as Dogecoin.

Recently, Coinshares, a European asset management company, applied to list an ETF that tracks the price of a basket of six cryptocurrencies, including Bitcoin and Ethereum, on the Euronext exchange in Amsterdam.

If the application is approved, it will be the first time an ETF investing in a basket of major cryptocurrencies has been listed on a major European exchange.

As of the first half of last year, the transaction value of Korea’s domestic cryptocurrency market was ranked 10th in the world, and its market capitalization was ranked 15th.

The Financial Services Commission (FSC) is preparing to introduce a new regulatory framework for the cryptocurrency industry by the second half of the year.

The new regulatory framework is expected to include provisions for the registration and supervision of cryptocurrency exchanges, as well as rules on the issuance and trading of cryptocurrencies.

The FSC is also considering the possibility of launching a pilot program for institutional investors to invest in cryptocurrencies.

최윤영 코빗 리서치센터장은 "이번 이슈는 코빗이라는 회사가 앞으로 나아가기 위해 어떤 역할을 할 수 있을지에 대한 중요한 시점에서 발생했다"며 "코비 시티의 시스템 유지가라는 측면에서 보면 당연히 급격한 변화가 일어날 수 밖