In the first quarter of 2024, the South Korean won has emerged as the most widely traded fiat currency against cryptocurrencies worldwide. According to a research report by Kaiko on April 15, the won accounted for trading volume worth over $456 billion on centralized crypto exchanges, surpassing the $455 billion volume in US dollars. This development is attributed to the “fee war” that has been going on between Korean crypto exchanges.
Interestingly, Euro-denominated trading pairs only managed to accumulate $59 billion in cumulative volume, placing them in third position for the first quarter of 2024.
Upbit, the leading crypto exchange in the region, has dominated more than 82% of South Korea’s crypto market share since 2021. However, due to the recent bull run in the crypto market, competition among rival exchanges has intensified. Both Bithumb and Korbit exchanges launched zero-fee campaigns towards the end of 2023 to attract more users. While Korbit’s market share remained below 1%, Bithumb’s market share tripled after introducing the zero-fee policy in October 2023. Nevertheless, this aggressive strategy led to a significant drop in revenue for Bithumb, as reported by Kaiko.
The research firm also highlighted that the volumes for the Korean won declined in early April. However, a substantial rebound is expected with the approval of spot Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong. It has been reported that Hong Kong’s financial regulator has given the green light for three spot Bitcoin ETFs, which are anticipated to be listed on the Hong Kong Stock Exchange in approximately two weeks.
As the crypto market continues to evolve, the dominance of the South Korean won and the strategies employed by exchanges will play a crucial role in shaping the landscape of cryptocurrency trading.