South Korea Crypto Trading Volume Plunges 55% as Upbit Dominates

NexBlock reported that total volume across Upbit, Bithumb, Coinone, Korbit, and Gopax hit $366.58 billion through June. This contraction persisted into July, with daily activity sliding another 16.9% compared to the previous month. While all platforms are navigating the slowdown, the impact remains uneven: Upbit’s market share climbed to 67.4% in July, even as its own volume dipped by 10%. Conversely, Bithumb’s share slipped to 27.1%, widening the competitive gap between the two giants to over 40 percentage points.

Market Consolidation and Regulatory Pressure

Analysts attribute this shift to a flight toward liquidity. During periods of low activity, traders prioritize platforms with deeper books to minimize price slippage, effectively starving smaller exchanges of volume. In response, platforms like Coinone and Korbit are pivoting toward institutional partnerships and securities firm collaborations to survive. This landscape is further complicated by the impending implementation of a 22% crypto gains tax on January 1, 2027. Finance Minister Koo Yun-cheol recently confirmed that the government intends to stick to this timeline, taxing annual gains exceeding 2.5 million won. As traders weigh the impact of this long-delayed levy, the broader South Korean market faces a transition from speculative retail dominance toward a more rigid, compliance-heavy environment.