On December 9, a report from Matrixport unveiled a concerning trend in the cryptocurrency market: a significant decline in retail participation, especially in South Korea. This lack of retail engagement poses challenges for trading platforms and upcoming initial public offerings (IPOs).
The analysis highlighted that without a surge in retail investors, even potential measures like Federal Reserve interest rate cuts may not yield a sustained market rally. According to Matrixport, trading volumes in South Korea have not only dipped but remain well below the historical highs seen in late 2023 and early 2024, when daily transactions surged into the billions.
Jihan Wu, co-founder of Matrixport, commented, “Without a broader influx of retail investors, even if the Federal Reserve chooses to cut interest rates, monetary policy easing alone will hardly drive a truly sustainable rally.”
The analysis underscores a stark difference in trading volumes, noting that during previous peaks, South Korean crypto transactions reached billions daily, whereas current figures languish at around $1 billion. This sharp contrast emphasizes the ongoing struggle for retail investment in the market.
As of now, Bitcoin (BTC) is priced at $93,706.28, holding a commanding market share of 58.42%, as reported by CoinMarketCap. Notably, Bitcoin has experienced a 17.52% decline in value over the past three months, with a daily trading volume of $64.27 billion, reflecting a modest increase of 3.81% in the last 24 hours.
Insights from the Coincu research team further suggest that without renewed retail interest, the financial and technological growth within the cryptocurrency sector may remain stunted. This ongoing lack of retail activity raises concerns about the sustainability of price and volume growth, reinforcing the findings from Matrixport”s analysis.
