South Korea’s crypto sector experienced a significant resurgence in 2023. It grew by more than 46% to reach a valuation of $21.08 billion. This rebound was a significant improvement over the very gloomy 2022, when the market’s worth fell to $19.4 billion.
While the market is on the rise, it’s important to remember that it hasn’t nearly reached the dizzying heights of 2021, when it peaked at a stunning $40.9 billion. So even though it’s a good trend, there is still potential for development to recapture former greatness.
The Korean Financial Intelligence Unit (KOFIU) conducted a comprehensive survey involving 35 crypto businesses to gather these insights. They reported a notable increase in listed assets, with the number rising from 1,362 in 2022 to 1,399 in the first months of 2023.
Crypto investors rise in numbers
In the first half of 2023 was approximately $2.19 billion, showing a minor 1.3% dip from the final quarter of 2022. However, the number of crypto investors fell from 6.27 million in 2022 to 6.06 million in 2023, marking a 3% decline in participation in the decentralized economy.
Crypto businesses faced significant challenges in 2022, just after their meteoric rise in 2021. The industry faced major setbacks, including the Terra blockchain collapse, which wiped out over $500 billion, and liquidation of FTX exchange.
FTX’s CEO , Sam Bankman-Fried is currently facing fraud charges from US authorities. It has had a negative impact on the confidence over the crypto market, further causing disruptions in trading firms.
The KOFIU survey revealed that approximately 10 crypto trading firms had a tough time due to declining trading volumes and reduced transaction fees during the so-called “crypto winter.” It’s been a testing period for most cryptocurrency exchanges, with crypto fundraises dropping to $2.1 billion per quarter.
However, there’s a silver lining in this somewhat gloomy scenario. The total operating profit increased by an impressive 82% from the 2022 figures. This indicates that while the industry has faced its share of challenges, there’s still room for optimism in the world of cryptocurrencies in South Korea.