Upbit New Listing Effect…Altcoin Trading Volume Soars

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Funds surged due to the Upbit listing effect, leading to a sharp increase in altcoin trading volume, but 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 won, and Ethereum dropped by 1.76% to 3,453,000 won. XRP also declined by 0.80% to 2,106 won, 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.

Conversely, strong demand concentration was observed in individual altcoins. Among the top weekly gainers on Upbit, ENZO surged by 97.69%, Tottenham Hotspur by 96.05%, and Zerobase by 55.11%, strengthening a 'theme-driven market' centered on specific assets. In particular, some assets like USDAI, Orca, and Zerobase entered the top ranks by trading volume, showing a concentrated inflow of short-term funds.

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 by trading volume, absorbing short-term liquidity. A new listing structure simultaneously increases price volatility and trading volume as trading demand rapidly concentrates relative to the initial circulating supply.

Furthermore, trading restrictions further stimulated initial price formation. Immediately after listing, buy and sell prices were restricted for a certain period, leading to a concentration of liquidity on one side, which resulted in short-term surges and a sharp increase in trading volume. The market interprets this as a typical 'listing premium market'.

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

The key going forward is whether the funds 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 coins, there is a possibility that the market could 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.*