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 crypto trading market is shrinking, and that slowdown is reshaping competition among the country’s five major won-based exchanges: Upbit, Bithumb, Coinone, Korbit and Gopax. Data cited by Odaily, attributing the report to NexBlock, showed combined trading volume across the five platforms reached about $366.58 billion in the first half of the year, down 54.6% from a year earlier. From July 1 to July 27, their combined volume totaled about KRW 17.34 trillion, a 16.9% decline from the same period of the previous month. Upbit still saw its own volume fall 10% to roughly KRW 11.69 trillion, yet its market share rose from 62.3% to 67.4%. Bithumb’s volume dropped to KRW 4.71 trillion, while its share slipped from 30.7% to 27.1%, widening the gap with Upbit to 40.3 percentage points. The report said lower volatility in bitcoin and altcoins has been a key factor behind weaker trading activity. In the first half, bitcoin’s average daily volatility was 1.25% and an altcoin index posted 1.79%, both below the KOSPI’s 4.67%. Smaller exchanges are now seeking room to maneuver through securities firm partnerships, institutional market strategies and business restructuring.

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