Upbit New Listing Effect…Altcoin Trading Volume Soars

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While funds flocked due to the Upbit listing effect, causing a surge in altcoin trading volume, the overall market continues to fluctuate without establishing a clear direction.

According to Upbit data as of 4:23 PM on April 27, Bitcoin fell by 0.83% from the previous day to 115,684,000 KRW, and Ethereum dropped by 1.76% to 3,453,000 KRW. XRP also declined by 0.80% to 2,106 KRW, indicating a general weakness across major coins. The Upbit Composite Index and Altcoin Index also fell by 0.89% and 1.44% respectively, suggesting that the overall market has entered a correction phase.

On the other hand, strong supply and demand imbalances were observed in individual altcoins. Among the top weekly gainers on Upbit, Enso surged by 97.69%, Tottenham Hotspur by 96.05%, and Zero Base by 55.11%, reinforcing a 'themed market' centered on specific assets. In particular, some assets like USDAI, Orca, and Zero Base entered the top ranks in trading volume, showing a concentration of short-term capital inflow.

The key background to this trend is the new listing effect. On this day, Upbit newly listed Onyxcoin (XCN) on the KRW and Tether markets, and Pearl (PRL) on the KRW, Bitcoin, and Tether markets. Indeed, immediately after their new listings, these assets entered the top ranks in trading volume, absorbing short-term liquidity. A new listing is structured to simultaneously increase price volatility and trading volume as trading demand rapidly surges compared to the initial circulating supply.

Furthermore, trading restrictions further stimulated initial price formation. Immediately after listing, buying and selling prices were restricted for a certain period, leading to a concentration of liquidity in one direction, which resulted in a short-term surge and an explosion in trading volume. The market interprets this as a typical 'listing premium market'.

However, the overall market trend remains conservative. While large-cap assets like Bitcoin and Ethereum are under downward pressure, funds are not spreading across the entire market but are concentrated in only a few altcoins. This suggests that the market remains in a trading range driven by short-term events rather than a full-fledged bullish phase.

The key going forward is whether the capital flowing into altcoins will spread to the entire market. If the new listing effect ends as a short-term event, the possibility of a sharp correction after increased volatility cannot be ruled out. Conversely, if trading volume is sustained and funds move to large-cap assets, the market could potentially shift back into an upward trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*