Upbit's Market Share Rises to 67%, Changing the Competitive Landscape of Korean Exchanges

The trading volume in South Korea's virtual asset market continues to shrink, leading to changes in the competitive landscape among the five major Korean won exchanges. Data shows that in the first half of this year, the total trading volume of the five major exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) was approximately $366.58 billion, a year-on-year decrease of 54.6%. From July 1 to 27, the total trading volume of the five exchanges was about 17.34 trillion won, down 16.9% compared to the same period last month. Among them, Upbit's trading volume was about 11.69 trillion won, with its market share rising from 62.3% to 67.4%; Bithumb's trading volume fell to 4.71 trillion won, with its share dropping from 30.7% to 27.1%, widening the gap between the two to 40.3 percentage points. Market analysis suggests that the decline in volatility of Bitcoin and altcoins is a significant reason for the shrinking trading volume. In the first half of this year, Bitcoin's average daily volatility was 1.25%, while the volatility of the altcoin index was 1.79%, both lower than the KOSPI index of the Korean stock market at 4.67%. Against the backdrop of shrinking market liquidity, investors' willingness to trade has decreased, putting greater pressure on exchanges that rely on trading fee income. Meanwhile, mid- to lower-tier exchanges are beginning to seek integration with traditional financial institutions, reflecting industry changes similar to global trends.

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