EOS Price Rallies 15% as 'Kimchi Premium' Returns in South Korea

The EOS price rallied by 15 percent on Tuesday, outpacing its peers amidst a comprehensive market advance.

At present, the EOS price is valued at a global average of $13.40, up from $11.71 on Monday. In the past week, EOS has surged more than 50 percent, which is the second-best performance among top 10-cryptocurrencies.

Notably, this price action has occurred even in the wake of the high-profile eosDAC airdrop, whose blockchain snapshot took place on April 15. Generally, prices rise ahead of an airdrop and decline once they occur, so it is significant that EOS has managed to sustain its advance even after the blockchain snapshot.

eos price
Source: CoinMarketCap

EOS's rally has correlated with strong trading volume in South Korea, where the token currently trades at a premium as high as $0.16 over prices on Western exchanges. EOS/KRW pairs on Bithumb and Upbit account for more than $629 million in volume, representing approximately one-third of the token's total daily trading volume.

Though not quite as profound as the "Kimchi premium" observed on South Korean trading platforms in late 2017, this spread between KRW and other trading pairs is a sign that local demand is continuing to tick back up as the overall market recovers from its bear cycle.

eos price
Source: CoinMarketCap

On a related note, EOS is likely trading up on yesterday's news that Coinone, another large South Korean exchange, listed EOS for trading against KRW, increasing the token's liquidity in this lucrative market.

Additionally, cryptocurrency hedge fund Multicoin capital on Tuesday released a detailed analysis and valuation of EOS, concluding that the token will likely see "significant upward price action" throughout the medium term.

"We believe that the EOS token model lends itself particularly well to value capture," Multicoin wrote in its report. "We expect to see very significant upward price action in the near to medium term. At current valuations, we continue to be bullish on EOS."

Finally, EOS's mainnet launch, which is currently scheduled for June 1, is rapidly approaching, so -- barring any delays or other foreseen incidents -- anticipation for this event could increase buy pressure over the short-term.

Featured image from Shutterstock.

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About the author

Josiah Wilmoth
Josiah Wilmoth

Josiah is the US Editor at CCN, where he focuses on financial markets and cryptocurrencies. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He holds bitcoin, but does not engage in day trading. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.