Korean Exchange Landscape Reshaped: Upbit's Share Rises to 67%, Smaller Platforms Bet on Financial Integration for Breakthrough

Odaily News: Trading volumes in South Korea's virtual asset market continue to shrink, and the competitive landscape among the five major Korean won exchanges is shifting. During the market downturn, liquidity has further concentrated in platforms with leading liquidity, while smaller exchanges are seeking breakthroughs through partnerships with securities firms, institutional market expansion, and operational restructuring.

Data shows that in the first half of this year, the cumulative trading volume of South Korea's five major Korean won exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) reached approximately $366.58 billion, down 54.6% year-on-year. Between July 1 and July 27, the cumulative trading volume of the five major exchanges stood at approximately 17.34 trillion Korean won, down 16.9% from the same period last month. Among them, Upbit's trading volume reached approximately 11.69 trillion Korean won, down 10%, yet its market share rose from 62.3% to 67.4%. Bithumb's trading volume fell to 4.71 trillion Korean won, with its share dropping from 30.7% to 27.1%, widening the gap between the two to 40.3 percentage points.

Market analysts believe that the decline in volatility of Bitcoin and altcoins is a key reason for the contraction in trading activity. In the first half of this year, Bitcoin's average daily volatility was 1.25%, and the altcoin index volatility was 1.79%, both lower than the KOSPI index's 4.67% on the Korean stock market. Against the backdrop of shrinking market liquidity, traders' willingness to transact has declined, putting greater pressure on exchanges that rely solely on trading fee revenue.

Meanwhile, mid-tier and smaller exchanges have begun seeking integration with traditional financial institutions. Industry insiders note that changes in the Korean exchange sector mirror global trends. U.S.-based exchange Coinbase has recently seen pressure on its trading revenue but has reduced its dependence on trading fees through subscription services, custody, and other non-trading businesses. The market is shifting from pure trading volume competition toward competition in financial ecosystems, institutional services, and asset infrastructure. (NexBlock)