Kaiko report: Q1 CEX Korean won cumulative trading volume exceeds US dollar, reaching US$456 billion

According to a recent report published by Kaiko, in the first quarter of 2024, South Korean won’s trading volume on CEX was $456 billion, compared with $445 billion in U.S. dollars. Overall, with the improvement of the macroeconomic environment and fierce competition among domestic exchanges in South Korea, trading volume in the local market reached the highest level in more than 2 years in early March. Upbit has been the dominant player in the South Korean crypto market since the beginning of 2021, with an average market share of 82% over the past three years. However, competition intensified during the recent bull run, with Bithumb and Korbit launching zero-fee campaigns in late 2023. While Korbit’s market share has not grown significantly, averaging less than 1% in 2024, Bithumb’s market share tripled in the months after launching its zero-fee policy in October 2023. Despite an aggressive strategy and a resulting surge in trading volume, Bithumb’s annual revenue fell by 60% in 2023. The significant drop in revenue may have prompted the exchange to discontinue its zero-fee campaign on February 5, just five months after its launch.