Battle for Korean Cryptocurrency Market Share Intensifies Amid Fee-Free Strategies

The cryptocurrency market in South Korea is witnessing a competitive landscape among domestic exchanges vying for market dominance. According to recent Coinmarketcap data, Upbit leads with a 62.88% market share in the KRW market, followed by Bithumb at 33.15%. However, despite Upbit’s significant lead, its market share has been gradually declining from a peak of nearly 92% in June, while Bithumb has been gaining ground, currently holding about 30% of the market.

Bithumb’s rapid growth is attributed to its zero-fee policy for all crypto assets implemented in October, which saw its market share soar past 20%. Other exchanges like Korbit are also adopting fee-free policies and relisting specific cryptocurrencies like Wemix to expand their market share, aside from Upbit.

However, questions linger regarding the sustainability of the fee-free model in the long term since fees constitute a substantial portion of exchanges’ revenue. Experts, such as Disperse Research, note that Korean investors’ selection criteria for exchanges go beyond fee policies, suggesting uncertainty about whether this strategy alone will drive long-term growth for exchanges.

Read More : Korbit Surpasses Coinone in Trading Volume Boosted by Wemix Listing