Crypto trading on South Korea’s five top won-based exchanges plunged 54.6% year over year in H1 2026, tallying $366.58 billion in total volume, according to NexBlock data. This sharp drop reflects a broader slowdown in one of Asia’s most active retail crypto markets.
Despite the slump, market leader Upbit strengthened its position. In July alone, Upbit’s trading volume dipped 10% to 11.69 trillion won, yet its market share surged from 62.3% to 67.4%. Meanwhile, Bithumb’s share shrank from 30.7% to 27.1%, widening the gap between the top two exchanges to more than 40 percentage points as smaller rivals such as Coinone, Korbit, and Gopax saw steeper declines.
NexBlock points to liquidity concentrating within the biggest platforms amid softer market conditions. Larger exchanges like Upbit can handle bigger orders with less price slippage, attracting traders even as overall activity fades. Smaller exchanges now face increasing pressure to pivot toward institutional services, regulatory compliance, or partnerships beyond the traditional retail spot market as volume dries up.
The trend is expected to continue into 2027, with South Korea preparing to impose a 22% tax on crypto gains starting January 1. This new regulation might further impact trading behaviors and market dynamics.
This content is for informational purposes and does not constitute financial advice.
