Dogecoin Mania Grips South Korea, Driving Price Premiums on Upbit and Bithumb

Dogecoin (DOGE) has been making waves in South Korea, with the popular meme cryptocurrency trading at a notable premium on local exchanges like Upbit and Bithumb. This surge in demand for DOGE has created a price differential of 1.5% higher on these platforms compared to global giant Binance, marking the largest premium in three months.

As South Korea's cryptocurrency market heats up, local investors are showing increased interest in DOGE, which has gained 78% since U.S. President-elect Donald Trump’s victory in the presidential election. DOGE’s recent price spike is also fueled by billionaire Elon Musk’s plans to create the “Department of Government Efficiency” (D.O.G.E) in the Trump administration, a move that further ties the cryptocurrency to political events.

DOGE Price Premium: What’s Driving the Surge?

At the time of writing, the DOGE/KRW pairs on Upbit and Bithumb were trading 1.5% higher than Binance’s DOGE/USDT pairs, after adjusting for the USD/KRW exchange rate. While this premium is significant, it’s still much lower than the extreme price differentials seen during past bull markets, particularly in March 2021. The current demand suggests growing interest, but without the intense speculative frenzy that marked previous market peaks.

According to data from 10x Research, DOGE has been the top-traded cryptocurrency on Upbit and Bithumb since Trump’s win. The 24-hour trading volume of DOGE on these exchanges recently hit a staggering $8 billion, representing 57% of the total stock market capitalization in South Korea.

This surge in trading volume reflects a renewed appetite for DOGE among South Korean investors, many of whom have been swept up in the recent excitement surrounding the cryptocurrency’s ties to Musk and Trump. DOGE has skyrocketed by 227% over the past 30 days, further boosting its appeal.

Musk, Trump, and the Rise of DOGE

A key factor behind DOGE’s recent surge is Elon Musk’s involvement with the upcoming Trump administration. Musk, a long-time supporter of Dogecoin, was recently appointed by President-elect Trump to head the new "Department of Government Efficiency" (D.O.G.E). The playful nod to the meme cryptocurrency has created a perfect storm of attention, with DOGE now receiving global media coverage and a surge of retail investors looking to capitalize on its rise.

Betting on a $1 DOGE: Options Traders Make Big Moves

As the DOGE price continues to rise, options traders are placing bold bets on the cryptocurrency reaching the $1 mark by the end of January 2025. On the PowerTrade exchange, a large number of DOGE call options with a $1 strike price have been bought, signaling expectations that DOGE could see significant upside in the near future.

PowerTrade revealed that a client had purchased 10,000 DOGE call options at $0.058 per contract, betting that the price will surpass $1 by January 25. These bets highlight growing optimism in the market, with traders expecting DOGE’s momentum to carry it to new highs.

A Cautious Optimism

While the Korean market’s enthusiasm for DOGE is undeniable, the current price premium remains modest compared to past bull market peaks. Speculative fervor is still lower than in March 2021, but the growing interest in DOGE could signal continued upward momentum, especially if global investors continue to flock to the coin.

As DOGE rides the wave of media attention, it’s clear that both the cryptocurrency community and traditional markets are keeping a close eye on its next moves. Whether DOGE can break the $1 barrier remains to be seen, but the excitement surrounding this meme coin is far from over.