Bithumb Regains Market Dominance After 3 Years
South Korea's cryptocurrency landscape has witnessed a historic shift as Bithumb surpassed Upbit in daily trading volume, reaching 5.04 trillion KRW ($37.6 billion) compared to Upbit's 4.41 trillion KRW. This marks the first time since 2021 that Bithumb has claimed the top position among Korean exchanges.
Key Factors Behind Bithumb's Resurgence
- Zero-Fee Trading Policy: Implemented in October 2023, this strategy increased Bithumb's market share from 12% to 20% within months
- KRW/USDT Trading Pair: Launched December 7, 2023, now accounts for 33% of Bithumb's total volume
- 10th Anniversary Promotions: Including membership rewards and random token airdrops
👉 Discover how top exchanges compete for market dominance
Market Implications and Trading Patterns
The introduction of USDT trading pairs represents a significant departure from traditional Korean exchange models that primarily used KRW/BTC pricing. Notably:
- Whale Activity: Top 10 holders account for 50% of USDT volume
- Regulatory Scrutiny: Questions arise regarding stablecoin usage in potential illicit activities
Bithumb officials addressed concerns:
"We've seen genuine investor growth alongside BTC price appreciation. Our surveillance systems actively monitor suspicious transactions."
FAQ: Understanding South Korea's Crypto Dynamics
Q: Why is USDT trading significant in Korea?
A: Previously unavailable on Upbit, USDT pairs provide new arbitrage opportunities and trading flexibility.
Q: How reliable is the "Kimchi Premium"?
A: While indicative of local demand, premiums above 5% often attract quick arbitrage, stabilizing prices within hours.
Q: What's driving Bithumb's volume surge?
A: Combination of fee elimination, new trading pairs, and bullish market conditions attracting retail and institutional traders.
👉 Explore crypto trading strategies for volatile markets
Comparative Analysis: Bithumb vs. Upbit
| Metric | Bithumb | Upbit |
|---|---|---|
| 24h Volume (KRW) | 5.04 trillion | 4.41 trillion |
| Market Share | 50% | 43% |
| BTC Premium | 1.3% | 1.8% |
| USDT Pairs | Available | Unavailable |
Future Outlook
Industry analysts suggest this shift may:
- Accelerate Upbit's potential stablecoin integrations
- Intensify marketing competition among exchanges
- Influence Korea's 2025 crypto regulatory framework
Note: All trading data reflects snapshot measurements during periods of high market volatility.