Korean Exchange Trading Volume Drops 54.6% as Upbit Share Rises to 67%

South Korea's top five exchanges saw H1 volume fall 54.6% to $366.58B. Upbit's market share expanded to 67.4%, while smaller platforms pivot toward financial integration amid declining volatility.

Woofun AI data shows that trading volume across South Korea’s five major Korean-won exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—reached approximately $366.58 billion in the first half of this year, representing a 54.6% decline year-over-year. From July 1 to 27, total volume for these platforms stood at around 17.34 trillion won, down 16.9% from the previous month. Upbit recorded a trading volume of about 11.69 trillion won; despite a 10% drop, its market share increased from 62.3% to 67.4%. Conversely, Bithumb’s volume fell to 4.71 trillion won, with its share decreasing from 30.7% to 27.1%, widening the gap between the two leaders to 40.3 percentage points.

Market analysts attribute the shrinking volume to reduced volatility, noting that Bitcoin’s average daily volatility was 1.25% and the altcoin index was 1.79% in the first half of the year, both lower than the KOSPI index at 4.67%. As liquidity wanes, smaller exchanges are pursuing partnerships with securities firms and institutional markets to diversify revenue. Industry experts observe that this shift mirrors global trends, such as Coinbase reducing fee dependence through subscription and custody services, marking a transition from volume-based competition to broader financial ecosystem development.