In Q1 2024, the South Korean won emerged as the most frequently exchanged traditional money versus cryptocurrencies on a global scale.
According to a report by Kaiko released on April 15, more than $456 billion in trading volume was handled by the top crypto exchanges, surpassing the $455 billion mark in U.S. dollar terms.
According to the research company, the increasing influence of the South Korean currency in the cryptocurrency market can be linked to the “price competition” among Korean digital asset trading platforms. The study pointed out:
“The improving macroeconomic environment and fierce competition among Korean exchanges has boosted trade volume on Korean markets which hit its highest level in more than two years in early March. In Q1 2024, the South Korean Won surpassed the US Dollar in terms of cumulative trade volume.”
During the same period, the total trading volume for Euro-denominated pairs came in at $59 billion, ranking third.
Crypto fee war among South Korean exchanges intensifies, but Upbit remains the top exchange
Upbit, which is the top crypto exchange in the region, has controlled approximately 82% of South Korea’s cryptocurrency market share since the beginning of 2021.
In contrast, the fierce competition among cryptocurrency exchanges was amplified by the latest market surge, leading Bithumb and Korbit to introduce zero-fee trading initiatives towards the end of 2023.
During this time period, Korbit’s market share continued to hover around the 1% mark. In contrast, Bithumb experienced a significant increase in market share following their implementation of a zero-fee trading policy in October 2023. However, this aggressive pricing strategy resulted in a substantial decrease in revenue for Bithumb as reported by Kaiko.
“Despite its aggressive zero-fee strategy and the resulting surge in trade volume, Bithumb’s annual revenue dropped by 60% in 2023. The significant decline in revenue may have prompted the exchange to discontinue its zero-fee campaign on Feb. 5, just five months after its launch.”
The research company observed that the Korean Won’s trading volume decreased at the beginning of April, anticipating a substantial increase following the approval of Bitcoin and Ether spot ETFs in Hong Kong.
According to reports, Hong Kong’s financial regulatory body has given the green light to three Bitcoin spot ETFs. These ETFs are anticipated to begin trading on the Hong Kong Stock Exchange within the next fortnight.
Read More
- SQR PREDICTION. SQR cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- SAGA PREDICTION. SAGA cryptocurrency
- Miners ‘punishing’ Bitcoin? Analysts point fingers as BTC slides below $66K
- EUR BRL PREDICTION
- BLOCX PREDICTION. BLOCX cryptocurrency
- CELL PREDICTION. CELL cryptocurrency
- BLACK PREDICTION. BLACK cryptocurrency
2024-04-16 16:03