According to a new report from 10x Research, the altcoin market capitalization is approximately $800 billion lower than in previous cycles, primarily due to retail investors, especially in South Korea, redirecting capital toward cryptocurrency-related stocks and other equities. Markus Thielen, CEO and head of research at 10x Research, stated, "The altcoin market capitalization could have been approximately $800 billion higher if retail investors, particularly in South Korea, had not turned their attention to crypto-related stocks and other stock market investments." He added that "altcoins have not attracted sufficient new capital this cycle."
Historically, South Korean investors have shown strong interest in altcoins, with altcoins accounting for over 80% of trading volume on local exchanges, compared to Bitcoin and Ethereum dominating global platforms. Data from CCData and the Korea Exchange indicated that between November 5-28, 2024, the average daily trading volume on Korean crypto exchanges was $9.4 billion, surpassing the $7 billion traded on the Kospi stock index. However, crypto trading volumes have declined sharply since then.
A recent market sell-off, triggered by re-escalating US-China trade tensions, erased $380 billion from the crypto market, with $131 billion concentrated in the altcoin sector. 10x Research warns that this shift marks a structural change, making it difficult for altcoins to recover lost capital in the short term. Additionally, during the Chuseok holiday in October, South Korean investors poured $1.24 billion into US tech and crypto-linked assets, including leveraged ETFs and stocks like Tesla and Meta, though this buying spree was offset by subsequent market pullbacks.
BTC
ETH
SOL
LTC
HBAR