Upbit, one of the largest cryptocurrency exchanges in South Korea, experienced a decline in its 24-hour trading volume in April. After reaching a peak in March, the trading volume dropped to $3.8 billion at the beginning of April.
On March 5, Upbit recorded its highest trading volume of the year, with a daily trading volume of nearly $15 billion. This surge in trading volume can be attributed to Bitcoin reaching a new all-time high of $69,200 on the same day. The increase in trading activity was mainly driven by significant inflows into new spot Bitcoin exchange-traded funds (ETFs) in the United States.
While Bitcoin was trading below $70,000 in other parts of the world, it reached a new all-time high of 96,734,000 South Korean won (approximately $72,504) on Upbit at around 3:00 pm UTC on March 5. This price difference between South Korea and the rest of the world is commonly known as the “Kimchi Premium,” named after the country’s famous fermented side dish. The Kimchi Premium refers to the disparity in BTC prices between Korean crypto trading platforms and international exchanges.
However, the surge in trading volume was short-lived, as it dropped to as low as $2.6 billion on March 31. As of April 1, Upbit’s 24-hour trading volume stands at $3.8 billion, according to coin information tracker CoinGecko.
In 2023, Upbit’s parent company reported an 81% decline in net profits. On November 28, Dunamu, the owner of Upbit, announced a profit of $23 million, significantly lower than the same period in 2022 when it earned around $123 million. The company attributed the decline in profits to a “sluggish investment market” caused by an economic downturn and lower digital asset prices.
Despite the drop in profits, Upbit has continued with its business expansion efforts. On January 9, the exchange obtained a Major Payment Institution license from Singapore’s central bank, allowing it to offer cryptocurrency and fiat-related services in Singapore.