Ethereum Hits New Highs in Japan & Korea: Demand Surge?
Ethereum (ETH) achieved new all-time highs in both Japan and South Korea on Sunday, driven primarily by surging domestic demand rather than exchange rate fluctuations. As of Monday morning, ETH is trading slightly below its intraday peak, but remains significantly above recent averages.
Yen and Won-Denominated Prices Surge
On August 10, Ethereum briefly reached ￥639,455 in Japan, according to CoinMarketCap data, surpassing its previous local high of ￥632,954 yen set on December 17, 2024.
While the USD-denominated price of ETH hovered around $4,300 at the time – still 12% below its all-time high of $4,891 from November 2021 – the yen-denominated price had already set a new record.
In South Korea, Ethereum hit ￦5,971,000 on August 10, as per Upbit exchange data, exceeding the prior local peak of ￦5.9 million from December 2021. This represented the highest Korean won-denominated price in nearly 3 years and 8 months.
Investors relying solely on US dollar charts may overlook crucial regional indicators. Local peaks often emerge first when currency trends and demand converge.
Exchange Rate Impact Unlikely
Cryptocurrency price variations in non-dollar terms are frequently attributed to exchange rate dynamics. However, this appears not to be the case here. Year-to-date, the won-dollar rate decreased from ₩1,476.23 to ₩1,388.77, and the yen-dollar rate declined from ¥157.33 to ¥147.65.
Both currencies have strengthened against the dollar during this period. Typically, a stronger local currency results in smaller gains when converting from dollars. Yet, Ethereum prices in both South Korea and Japan have increased more significantly than dollar prices, indicating heightened domestic demand.
Trading in these countries occurs in local currencies on domestic exchanges, with foreign participation restricted due to foreign exchange regulations.
The price surge may reflect positive sentiment following recent developments such as expanding corporate adoption of cryptocurrencies (beyond Bitcoin), a US presidential executive order related to cryptocurrency investments within 401(k) retirement plans, and the SEC's dismissal of litigation against Ripple—which generally boosted the altcoin market.
The rally is also driven by growing Ethereum purchases from US companies implementing an "Ethereum Treasury" strategy—systematic accumulation of ETH as a corporate asset.
For example, Bitmine now holds over $2.9 billion in Ethereum after rapidly accumulating 833,137 ETH in just 35 days. The firm intends to control up to 5% of ETH’s total supply through aggressive accumulation and strategic liquidity partnerships.