South Korean Crypto Exchanges See Trading Volume Decline for Five Weeks

The trading volume on the five largest South Korean crypto exchanges has been declining for five consecutive weeks. For the first time in nearly three years, the weekly volume has fallen below the 10 trillion Korean won mark. This is according to data from Digital Asset, published on 10 July.

Volume falls below 10 trillion KRW for first time in nearly three years

According to Digital Asset, the total trading volume of Upbit, Bithumb, Coinone, Korbit and Gopax for the week of 3 to 10 July amounts to approximately 9.9676 trillion KRW. This is a decline of 25.75% compared to the previous week, when the volume was still around 13.4 trillion KRW. The last time the weekly volume fell below 10 trillion KRW was in late September 2023, over two years and nine months ago.

The downward trend began in early June, when the volume was still 17.7 trillion KRW. Since then it has dropped by around 43.5% in total. That is a significant blow for the South Korean market, which normally ranks among the most active crypto markets in the world.

Continuing pressure on the Korean crypto market

The five-week slump shows that interest from South Korean investors in crypto is declining for the time being. Whether this is a temporary pullback due to broader market conditions or a more structural pattern remains unclear. Interestingly, this decline is taking place while elsewhere in the world crypto has posted negative returns for a third consecutive quarter, pointing to a broader malaise in the market.

The combination of declining local volumes and disappointing global returns is putting further pressure on the position of South Korean exchanges. Whether the market recovers in the short term depends heavily on how the broader crypto market develops in the coming weeks.