In the first quarter of 2024, Korean cryptocurrency markets experienced a surge in trade volume, reaching levels not seen in over two years. According to data from blockchain analytics firm Kaiko, the Korean Won (KRW) surpassed the US Dollar (USD) in cumulative trade volume during this period.

Factors such as an improved macroeconomic environment and increased competition among local exchanges contributed to the significant increase in trade volume. Despite Upbit’s long-standing dominance in the South Korean cryptocurrency scene, recent developments have introduced more competition to the market. Both Bithumb and Korbit launched zero-fee campaigns towards the end of 2023, further intensifying competition.

While Korbit’s market share remained relatively stable at around 1% in 2024, Bithumb experienced a substantial increase, tripling its market share following the implementation of its zero-fee policy in October 2023. However, despite the success of the zero-fee strategy in driving trade volume, Bithumb faced a 60% decline in revenue in 2023, leading the exchange to discontinue the initiative.

Although there was a slight decrease in KRW volumes in early April, Kaiko suggests that market sentiment in the Asia-Pacific region could receive a boost following the approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong. HashKey and Bosera International recently secured conditional approval from the Hong Kong Securities and Futures Commission for two spot crypto ETFs, marking a significant milestone for Asian investors.

As the market continues to evolve, it’s important for investors to stay informed about the latest developments in the cryptocurrency space. Stay tuned to Global Crypto News for more updates and insights to help you navigate the world of cryptocurrencies with confidence.

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