Smaller cryptocurrency exchanges in South Korea are rapidly losing ground as investment funds flow into the domestic stock market. Market shares of Coinone and Korbit, which once approached double digits, have recently fallen back to the 1 percent range.
According to cryptocurrency data platform CoinGecko on Tuesday, combined 24-hour trading volume at Korea's top five exchanges stood at approximately $2.39 billion (about 3.51 trillion won) as of 1:30 p.m. that day. That marks a decline of roughly $100 million from three months earlier on February 11. The drop is attributed to an unprecedented stock market rally that has drawn retail investor funds into equities.
The contraction was particularly pronounced among smaller exchanges. Coinone's trading volume fell from around $200 million three months ago to $43.46 million, a decline of about 78 percent. Korbit saw an even steeper drop, plunging from $245 million to $19.49 million over the same period, a decrease of more than 90 percent.
Market share also shrank sharply. Coinone and Korbit, which had climbed to the 8 percent and 9 percent range respectively in February, now hover around 1 percent. Upbit, by contrast, saw its trading volume rise by about 25 percent, while Bithumb's decline was limited to around 4 percent, further cementing the duopoly. The combined market share of Upbit and Bithumb now exceeds 97 percent.
"Amid weakening investor sentiment and declining liquidity, users are increasingly gravitating toward larger exchanges with relatively abundant liquidity," an industry official said.
