South Korea’s virtual asset market is seeing a prolonged drop in trading activity, and the balance of competition among the country’s five won-based exchanges is shifting with it, according to NexBlock as cited by ChainCatcher. As volumes shrink, capital is moving more heavily toward platforms with deeper liquidity, while smaller exchanges are trying to find room to compete through partnerships with securities firms, expansion into the institutional segment, and business restructuring.
The report said the next phase of competition will not be defined only by raw trading volume. Stablecoin liquidity, ties with traditional finance, institutional market development, and regulatory compliance are emerging as key battlegrounds. Data cited in the report showed that total trading volume across Upbit, Bithumb, Coinone, Korbit, and Gopax reached about $366.58 billion in the first half of this year, down 54.6% year over year. From July 1 to July 27, combined turnover across the five exchanges came to about KRW 17.34 trillion, down 16.9% from the same period a month earlier. During that stretch, Upbit’s market share rose to 67.4%, while the gap between Upbit and Bithumb widened to 40.3 percentage points.
South Korea’s virtual asset market continues to contract, and the competitive landscape among the country’s five KRW-based exchanges is changing, according to NexBlock, as cited by ChainCatcher.
In a weak market, capital is concentrating even more on platforms with stronger liquidity. Smaller exchanges, the report said, are looking for openings through partnerships with securities firms, moves into the institutional market, and business restructuring. The next stage of competition is expected to center not only on trading scale, but also on stablecoin liquidity, cooperation with traditional finance, expansion in the institutional segment, and regulatory compliance.
First-half trading fell 54.6% year over year
Data cited in the report showed that the combined trading volume of South Korea’s five major KRW exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — totaled about $366.58 billion in the first half of this year, down 54.6% from a year earlier.
July activity also weakened
From July 1 to July 27, combined trading volume across the five exchanges came to about KRW 17.34 trillion, a 16.9% decline from the same period of the previous month.
Upbit recorded about KRW 11.69 trillion in volume during that period. Although its trading volume fell 10%, its market share increased from 62.3% to 67.4%. Bithumb’s trading volume fell to KRW 4.71 trillion, and its market share slipped from 30.7% to 27.1%. The gap between the two widened to 40.3 percentage points.
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