Upbit Won Deposits Plummet 36% Amid Shift to Digital Assets

South Korean cryptocurrency exchange Upbit has seen a significant decline in its won-denominated customer deposits. According to a report from DealSite, the deposits have dropped by approximately 36% this year, reaching 2.0974 trillion won (about $1.5 billion) as of the latest reporting period.

This marks a sharp fall from the 8 trillion won peak reached during the height of the crypto bull market, with the outflow of idle funds suggesting that retail investors are pulling back from keeping cash on the exchange. This could be indicative of a broader shift in market sentiment or a move to other investment vehicles.

Notably, Upbit's fee revenue from trading activity has also fallen by nearly half over the same period, indicating reduced trading volumes as fewer customers actively trade on the platform.

However, while won deposits have decreased, the exchange's holdings of Bitcoin and Ethereum have increased. This divergence suggests that customers are converting their fiat holdings into major digital assets, accumulating them in Upbit wallets rather than withdrawing to external wallets or selling off.