Upbit, a leading cryptocurrency exchange in South Korea, experienced a notable decrease in its 24-hour trading volume, which fell to $3.8 billion at the beginning of April, a stark contrast to its performance in early March.
The exchange had previously witnessed a remarkable spike in daily trading volume, reaching nearly $15 billion on March 5, marking its highest trading volume for the year.
This surge was closely linked to Bitcoin’s climb to an unprecedented peak of $69,200 on the same day, fueled significantly by the influx of capital into newly introduced spot Bitcoin exchange-traded funds (ETFs) in the United States.
Notably, Bitcoin’s price on Upbit soared to a new all-time high of 96,734,000 South Korean won (approximately $72,504) at around 3:00 pm UTC on March 5, while it remained under $70,000 in global markets.
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This distinct price gap, known as the “Kimchi Premium,” refers to the variation in Bitcoin prices between South Korean exchanges and those abroad, drawing its name from a popular Korean dish.
However, the excitement was short-lived, as trading volumes plummeted to as low as $2.6 billion by the end of March.
As of April 1, according to CoinGecko, Upbit’s trading volume has modestly recovered to $3.8 billion.
Despite the fluctuations in trading volume, Upbit’s parent company, Dunamu, faced a significant financial setback in 2023, with an 81% drop in net profits.
On November 28, Dunamu reported earnings of $23 million, a decrease from the $123 million earned in the same period in 2022.
The company attributed the decline to a “sluggish investment market” due to economic downturns and the diminished value of digital assets.
In the face of these challenges, Dunamu has not halted its expansion efforts.
On January 9, Upbit received a Major Payment Institution license from the Monetary Authority of Singapore, enabling the company to provide a range of crypto and fiat-related services in Singapore, signaling its commitment to growth despite the financial downturn.
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