Despite a significant drop in cryptocurrency prices, users of major domestic exchanges have increased their holdings. Over the past six months, the value of entrusted virtual assets has decreased by about one-third, yet the quantity of major cryptocurrencies like Bitcoin and Ethereum has risen. Analysts suggest that this trend reflects a growing number of investors viewing price declines as buying opportunities, alongside those opting to hold rather than sell.
According to Dunamu's semi-annual report released on August 18, the value of virtual assets entrusted by Upbit users fell from 62.23 trillion won at the end of last year to 41.93 trillion won by the end of June, a decrease of 32.6%.
By coin, the value of Bitcoin decreased by 25.4% to 15.52 trillion won. Ripple (XRP) saw a 40% drop to 10.18 trillion won, while Ethereum's value fell by 33.4% to 5.57 trillion won.
In contrast, the quantity of major cryptocurrencies entrusted by users increased. By the end of June, Dunamu had received 173,911 Bitcoins, a 7.2% increase from the end of last year. During the same period, Ethereum and XRP holdings rose by 21.2% and 3.3%, respectively. Solana also saw an 11.7% increase.
A similar trend was observed at Bithumb, where the value of entrusted virtual assets dropped from 17.90 trillion won at the end of last year to 12.50 trillion won by the end of June, a 32.7% decline.
However, the quantity of major coins entrusted increased. Bitcoin rose from 45,341 to 47,117, a 3.9% increase, while Ethereum increased by 22.8% to 658,212. XRP grew from 1.81 billion to 1.85 billion, and Dogecoin rose from 2.56 billion to 2.79 billion. Notably, Ethereum's holdings increased by over 20% on both Upbit and Bithumb.
This trend is interpreted as a response to the prolonged adjustment in the cryptocurrency market, with more investors viewing price declines as buying opportunities. Bitcoin, which once peaked at around $124,000 last year, has recently fallen to the $60,000 range. Industry experts explain that many investors have opted for a strategy of incremental buying, purchasing in smaller amounts as prices drop rather than making large purchases all at once.
Additionally, the increase in entrusted quantities may also reflect existing investors choosing to hold rather than sell. A financial industry source stated, "In a situation where prices have dropped significantly, the combination of new investors entering the market for low-cost purchases and existing investors holding their assets has likely contributed to the increase in cryptocurrency quantities on exchanges."
However, it is difficult to conclude that the increase in entrusted quantities is solely due to new purchases, as it may also include assets transferred from personal wallets or other exchanges. The industry views the situation as a complex interplay of low-cost buying during price declines and the continued holding by existing investors.
* This article has been translated by AI.
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