Upbit leads the pack of Korean exchanges with 80% market share.
A new study by a web3 consulting firm DeSpread.io has shed light on the state of cryptocurrency trading in South Korea, revealing that centralized exchanges hold a dominant position in the market. The analysis focused on the top four Korean exchanges - Upbit, Bithumb, Coinone and Korbit.
The study found that despite a global downturn in trading volumes since March, Korean exchanges have bucked the trend. Trading volumes on major Korean exchanges rose 37% from June to July. This indicates the growing influence of domestic platforms. Currently, the top Korean exchanges account for around 10% of volumes compared to Binance, and 16% compared to Coinbase.
Upbit stands alone at the top in South Korea, responsible for a staggering 80% of volumes in the Korean market. Second-placed Bithumb trails with a 15-20% share. Coinone and Korbit have minimal presence.
In an attempt to capture market share, Bithumb introduced a zero-fee structure in early October. However, this policy did not have a lasting impact, with Bithumb's volumes dropping back down later in the month.
Analysis shows Korean traders have a high-risk appetite, with minimal Bitcoin and Ethereum volumes compared to the global market. Instead, altcoins like Loom Network, eCash and Flow make up the bulk of trades.
The report also found that Korean exchanges act as fiat gateways, with users withdrawing to platforms like Binance to access products not offered domestically. The Tron network is preferred for transfers over Ethereum, due to lower fees.
The full report provides a deeper analysis of trading patterns, investor behavior, exchange policies and other aspects of the Korean cryptocurrency landscape.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
