South Korea's Crypto Market Cools Down as Trading Activity Dries Up

South Korea's crypto market has cooled down significantly in Q2 2026, with Upbit and Bithumb seeing sharp revenue declines. The operating profit of Upbit's operator Dunamu sank 73% from Q1 2027 to 23.5 billion won ($18 million), while Bithumb's revenue fell by 35% over the last 12 months.

The decline in trading activity and shifting investor interest have weighed on the domestic digital asset markets. Upbit reported a Q2 revenue of 173.5 billion won, down 26% from the first quarter of the year. Bithumb's revenue also suffered a sharp deterioration, with Q2 revenue at 86.3 billion won, a jarring 54.8% year-over-year.

The company attributed the decline to shrinking liquidity in the global digital asset market and weaker investor sentiment. Trading activity across South Korea's major exchanges has fallen from its previous highs, dealing a major blow to the earnings of service providers.