Global cryptocurrencycurrency markets have changed as the South Korean Won has surpassed the US Dollar to become the most traded fiat currency versus digital assets. In the first quarter of 2024, the Won registered trading volume of approximately $456 billion on controlled exchanges, just shy of the $455 billion recorded for the US Dollar, according to a recent analysis by Kaiko.
This increase in trading volume can be ascribed to fierce competition among South Korean cryptocurrencycurrency exchanges, which have engaged in a “fee war.” In an effort to entice traders, big platforms such as Upbit and Bithumb have reduced trading fees, with Bithumb even announcing a zero-fee policy in late 2023.
The market landscape has been further stimulated by macroeconomic developments and the bullish momentum seen in the cryptocurrencycurrency sector. Upbit continues to dominate the South Korean market, with an 82% dominance. Meanwhile, Bithumb’s market share has tripled, despite financial problems caused by its price approach.
Although this method increased volume, it reduced Bithumb’s revenue, resulting in a 60% drop in annual earnings.
As the competitive landscape shifts, the Korean Won’s significance in cryptocurrencycurrency trading demonstrates its growing importance in the global financial ecosystem. The trend is expected to continue, with potential implications from new legislation and the introduction of bitcoin ETFs in nearby markets such as Hong Kong.
Read also: Bithumb Rises to Challenge Upbit’s Dominance in South Korea Crypto Race
