Seoul: The value of South Korea’s virtual asset market experienced a significant increase of 27 percent in the first half of the year, reflecting the growth trends observed in the global cryptocurrency market, recent data revealed.

According to Yonhap News Agency, the market capitalization of South Korea’s virtual asset sector reached 55.3 trillion won (US$40.1 billion) by the end of June, up from 43.6 trillion won recorded six months earlier. This growth was accompanied by a 67 percent surge in the average daily transaction value, reaching 6 trillion won. Furthermore, the operating profit of market operators saw a substantial increase of 106 percent, amounting to 590 billion won during the January to June period.

User engagement in the market also saw positive growth, with the number of market users rising by 21 percent to 7.78 million. The total value of Korean won deposits made by traders increased by 3 percent, totaling 5 trillion won. The Financial Services Commission (FSC) credited this growth to a ri
se in bitcoin prices following the release of bitcoin exchange-traded funds in the U.S. and the cryptocurrency’s halving in April.

The FSC also noted that the market gained further momentum due to expectations that both U.S. presidential candidates, Donald Trump and Kamala Harris, would be supportive of the industry. As of the end of June, 14 virtual asset market operators were active in South Korea, trading a total of 554 types of cryptocurrency, such as bitcoin, ethereum, XRP, and Dogecoin.

The data also revealed a change in the market’s composition, as there were 600 types of cryptocurrencies in the South Korean market as of last year. Additionally, the maximum drawdown rate, indicating price volatility, increased to 70 percent in the first half, up by 8 percentage points from six months prior.