Daily trading volume across South Korea’s five largest won-based virtual asset exchanges has dropped to about 412.7 billion won, down 88% from a year earlier, according to JoongAng Ilbo. The decline has come alongside a 41% contraction in the global crypto market, which now stands at $2.322 trillion. The downturn is also hitting company earnings: Dunamu, the country’s leading crypto firm, reported first-quarter revenue down 55% year over year and operating profit down 78%.
Smaller exchanges are under even more pressure. Coinone, Korbit and Gopax, all of which posted operating losses last year, are expected to remain in the red this year. Korbit has already sold assets three times this year. Within a 10-day span this month, it sold 15 BTC and 60 ETH, raising about 1.6 billion won in cash. Tiger Research described the current market as a “second crypto winter,” citing the sharp drop in total market capitalization and the lack of new projects. Even so, institutional adoption of blockchain is accelerating in South Korea, with tokenized assets and stablecoins emerging as the main focus. Large securities firms including Mirae Asset have recently acquired stakes in exchanges, while the government has repeatedly signaled its intention to advance the Digital Asset Basic Act.
Daily trading volume at South Korea’s five largest won-denominated virtual asset exchanges has fallen to about 412.7 billion won, down 88% from a year earlier, according to JoongAng Ilbo. Over the same period, total global virtual asset market capitalization shrank 41% to $2.322 trillion.
Dunamu’s earnings also weakened
Dunamu, the country’s leading crypto industry player, posted a 55% year-over-year decline in first-quarter revenue and a 78% drop in operating profit.
Smaller exchanges are facing even tighter conditions. Coinone, Korbit and Gopax, which already recorded operating losses last year, are expected to continue posting losses this year.
Korbit sold BTC and ETH this month
Korbit has sold holdings three times this year. During a 10-day period this month, the exchange sold 15 BTC and 60 ETH, raising about 1.6 billion won in cash.
Tiger Research calls it a second crypto winter
A director at Tiger Research said the current period can be viewed as a “second crypto winter,” with total crypto market capitalization sharply reduced and almost no new projects in sight.
Still, institutional adoption of blockchain is picking up despite the market slump. The main areas of focus are tokenized assets and stablecoins. Large brokerages such as Mirae Asset have recently acquired stakes in exchanges, and the South Korean government has repeatedly signaled its determination to push forward legislation on the Digital Asset Basic Act, indicating that the market’s medium- to long-term growth potential is still viewed positively.
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