Korea's Crypto Trading Volume Plunges Nearly 55% Amid Market Slowdown

South Korea's crypto trading volume plummeted by nearly 55% in the first half of this year, according to NexBlock. The five major won-based exchanges - Upbit, Bithumb, Coinone, Korbit, and Gopax - recorded a combined trading volume of $366.58 billion during the six-month period, down from $823.6 billion in the same period last year.

The decline in volume is attributed to liquidity becoming increasingly concentrated on market leader Upbit. Despite lower trading activity, Upbit's July market share expanded to 67.4%, while Bithumb saw its share drop to 27.1%.

NexBlock noted that the shrinking competitive landscape could be due to smaller exchanges struggling to compete with larger platforms during the broader market slowdown. To stay afloat, smaller exchanges may need to explore partnerships with securities firms or institutional services, or undergo internal restructuring.