The rate of Ethereum has surged by more than fifteen percent overnight, reaching a new all-time high at $1266. On January 4, the price of Ethereum set up a new all-time high at one thousand dollars, surpassing the one thousand dollars for the first time in its two-year history. The marketplace valuation of Ethereum passed an amazing one hundred billion dollars, becoming the third digital currency to achieve this other than bitcoin and Ripple.
However, on January 8, Ethereum showed another main growth in value, achieving $1266 throughout all international exchanges including Binance and Bittrex. The latest rally of Ethereum has been led by the South Korean marketplace and main digital currency exchanges within it, such as Bithumb, Korbit, and Coinone. Within the South Korean international marketplace, the rate of Ethereum passed $1800, demonstrating a $534 premium over the worldwide common price. That is, almost thirty percent premium over the worldwide average Ethereum price.
On Bithumb, the Seoul-based digital currency exchange that lately became the second biggest buying and selling platform at the back of Binance, Ethereum is the third most traded digital currency with a $378 million every day buying and selling quantity. No particular occasion or movement has caused the growth in the price of Ethereum during the last few days. The transaction quantity and developer interest of Ethereum have been at the growth in general, for the reason that the Ethereum network is settling more than 1.2 million transactions per day. The growth within the consumer activity at the Ethereum network could have caused the price growth of Ethereum within the short-term.
However, in attention of the abrupt surge in call for from the South Korean marketplace, it is probably that FOMO or worry or missing out drove the current price surge of Ethereum, because the South Korean digital currency exchange marketplace is strongly driven by FOMO. One minor aspect that could have additionally caused a growth in demand for Ethereum is the increase of adoption of decentralized programs like CryptoKitties and EtherDelta, which have confirmed the ability of Ethereum in peer-to-peer crypto asset buying and selling.
Even though the price of digital currencies within the South Korean marketplace is considerably higher than the worldwide average prices, it isn’t possible for foreigners to take benefit of the arbitrage possibility within the South Korean marketplace for plenty motives. As an example, traders need phone numbers to sign up on South Korean exchanges. South Korean telecoms do not issue to people without Korean citizenship, residential visa, or work visa. Also, traders need bank accounts. However, banks do not open bank accounts to foreigners without residential or work visa. Banks make it tough for residents to open accounts as properly, because of the governments’ latest crackdown on offshore banking accounts and fraudulent bank accounts. The South Korean authorities has banned foreigners and underaged traders from making an investment in digital currencies. South Korean digital currency exchanges can’t receive foreigners into their buying and selling platforms.
Conclusively, the expenses of digital currencies in the South Korean marketplace are high due to capital controls. The South Korean marketplace is remoted from the worldwide marketplace and foreigners aren’t allowed in it. Conversely, South Korean investors cannot open accounts overseas without proper paperwork.