Global crypto trading trends show regional patterns and price gaps

cryptocurrency trading exhibits distinct regional and seasonal patterns influenced by various factors, according to an analysis by Coin Metrics and analyst Victor Ramirez.

The report highlights the “Kimchi Premium,” which refers to the price disparity between cryptocurrencies in South Korea and global averages. 

This phenomenon is largely driven by capital controls and localized demand, with Ramirez noting that regulatory barriers limit arbitrage opportunities for international investors. 

For example, Bitcoin (CRYPTO:BTC) prices surged to nearly $115,000 during political unrest in South Korea, reflecting a 20% premium compared to global prices.

Coin Metrics’ findings indicate that trading activity aligns with specific seasonal and regional trends. 

Exchanges such as Bithumb and Upbit see peak trading during East Asian hours, while U.S.-based platforms like Coinbase and Gemini are more active during American time zones. 

Binance, on the other hand, demonstrates a broader reach, with increased activity during European hours.

“Binance sees –12.1% less trading volume relative to its average volume of $802M during East Asian hours, but 19.4% greater trading volume during European hours,” the report states.

Certain cryptocurrencies also show regional preferences; for instance, XRP (CRYPTO:XRP), Stellar (CRYPTO:XLM), and Cardano (CRYPTO:ADA) are traded more actively during East Asian hours, while Bitcoin (BTC) and Ethereum (CRYPTO:ETH) see higher activity in European and U.S. time zones.

The analysis also emphasises the global nature of cryptocurrency use. 

Bitcoin and Ethereum transfer values align with their trading patterns, while stablecoins like Tether (CRYPTO:USDT) exhibit significant on-chain activity during European hours.

Ramirez’s report notes a revival of tokens from previous years, such as XRP, which experienced a 278% price increase alongside a rise in on-chain activity.