The price of Ethereum grew more than 15 percent, per night, reaching a new record high of 1,266 USD.
New record high of 1,266
Four days ago, on the 4th of January we already wrote about the fact that the price of Ethereum for the first time has overcome a mark in 1000 dollars. Market capitalization Ethereum then overcame $ 100 billion, becoming the third largest cryptocurrency after bitcoin and Ripple, which succeeded.
Just four days later, January 8, Ether showed another significant increase in cost, reaching 1,266 USD on major exchanges such as Bittrex and Binance.
The leader of growth of prices for Ethereum is South Korea with its leading cryptocurrency exchanges: Bithumb, Korbit and Coinone. On the market of South Korea, the price of Ethereum exceeded USD 1,800, the difference with the global average price is 534 USD.
On Bithumb, located in Seoul cryptocurrency exchange, which recently became the second largest trading Ethereum, it amounted to 378 million dollars in the last 24 hours.
It is impossible to single out any specific event that was the catalyst for the growth rates. The volume of transactions and activity of the developers of Ethereum as a whole grow, now the Ethereum network handles over 1.2 million transactions per day. The growth of user activity in Ethereum could lead to increased prices in the short term.
But given the sharp increase in demand from the South Korean market, it is likely that the price hike responsible social phenomenon known as “fear of missed opportunities”.
One of the minor factors that could provoke the growth of demand for Ethereum is the growing acceptance of decentralized applications such as CryptoKitties and EtherDelta who have demonstrated the potential of Ethereum.
Although the prices for cryptocurrencies on the South Korean market is much higher than the world, foreigners are unable to take advantage of the arbitrage opportunity in the South Korean market for many reasons, mainly due to various constraints, such as:
For work on the South Korean cryptocurrency exchanges need to confirm the phone number tied to the Korean operator, but it’s impossible. As South Korean mobile operators not to sell the rooms (even prepaid) to foreigners without residence permit or work visa.
South Korean banks also do not open Bank accounts for foreigners without a residence permit or work visa.
The South Korean market is isolated from global market and foreigners are not allowed into it. Conversely, South Korean traders are unable to open accounts abroad without issuing the proper documentation.