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In the global cryptocurrency market, South Korea can definitely be called a 'crypto-loving' country. On certain trading pairs, the trading volume of Upbit, a South Korean exchange, may even surpass giants like Binance and Coinbase. Due to high demand and liquidity issues, prices on Upbit often experience premiums, making its data highly scrutinized in the market.
Bithumb surpasses Upbit to reclaim the top position in trading volume
Recently, Bithumb, a South Korean exchange, temporarily surpassed the leading domestic exchange Upbit, becoming the platform with the highest trading volume. According to CoinMarketCap data, as of 6:13 PM yesterday, Bithumb's 24-hour trading volume was 5.04 trillion Korean won, exceeding Upbit's 4.41 trillion Korean won, capturing a 50% market share.
In fact, since 2019, Bithumb has consistently competed with Upbit in terms of trading volume. However, in 2021, Upbit gained more users after securing real-name accounts from the Industrial Bank of Korea (KEB). Since then, Bithumb has maintained its position as the second-largest exchange. Recently, Bithumb finally surpassed Upbit after three years, reclaiming its position as the South Korean exchange with the highest trading volume.
Surge in trading volume with the KRW/USDT trading pair
Reports from South Korean media suggest that Bithumb's increase in trading volume can be traced back to its free trading fee policy. In October of last year, Bithumb announced the removal of trading fees to expand its market share. After implementing this policy, Bithumb's market share temporarily rose to 20%. Additionally, to celebrate its 10th anniversary, Bithumb launched various activities, including a membership program and random airdrops of cryptocurrencies, to attract investors.
On the other hand, the introduction of the KRW/USDT trading pair on December 7th, coupled with Bithumb's recent surge in trading volume, is a significant factor in surpassing Upbit. As of the 28th, the trading volume of USDT on Bithumb was approximately 923 billion Korean won, second only to BTC, accounting for nearly one-third of Bithumb's total trading volume. Notably, the top 10 holders of USDT make up half of the trading volume, indicating a high dependence on large participants, known as 'whales,' in the South Korean cryptocurrency industry.
Previously, South Korean exchanges primarily priced assets in Korean won or BTC, and Upbit has not yet listed any USD stablecoins. For regular investors in South Korea, as they can directly purchase cryptocurrencies with Korean won, holding stablecoins like USDT may not seem necessary. This has raised concerns about whether USDT is mostly used for illegal transactions. A representative from Bithumb stated that after the zero-fee policy, the price of Bitcoin increased, attracting more interest in cryptocurrency assets. On one hand, new investors entered the market, and on the other hand, they will continue to monitor suspicious transactions. |
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Post time 1-1-2024 03:10:41