- Upbit, a cryptocurrency exchange in South Korea, witnessed its 24-hour trading volume decline to $3.8 billion in early April, down from a peak in March.
- Bitcoin’s rally drove a surge in Upbit’s daily trading volume, peaking at around $15 billion on March 5, coinciding with bitcoin’s new all-time high.
- Dunamu, Upbit’s parent company, reported an 81% decrease in net income for 2023, with profits plummeting to $23 million from $123 million in 2022.
OUR TAKE
Upbit’s 24-hour trading volume experienced a notable decline in April. The decrease could be attributed to a temporary slowdown in trading activity following the peak observed in March. Additionally, factors such as regulatory developments and macroeconomic trends may have also played a role in shaping trading volumes during this period. It could reflect a reassessment of the risk associated with digital investments amid market volatility and regulatory uncertainties.
–Sylvia Shen, BTW Reporter
Upbit, one of the largest cryptocurrency exchanges in South Korea, had its 24-hour trading volume drop to $3.8 billion at the beginning of April from a high earlier in March.
Bitcoin drives surge in Upbit’s daily trading volume
The exchange had its largest trading volume on March 5 when Upbit reported a daily trading volume of around $15 billion.
The increase in daily trading volume on the cryptocurrency exchange could be explained by the fact that bitcoin hit a new all-time high.
While bitcoin was trading at $69,200 globally, the price surged to a new all-time high of 96,734,000 South Korean won (approximately $72,504) on Upbit on March 5.
Also read: Hong Kong crypto exchange HKVAEX is shutting down
The price gap between South Korea and other regions is known as the “Kimchi Premium.” It signifies the difference in Bitcoin prices between Korean crypto trading platforms and those found on international exchanges.
The increase was short-lived, as the exchange’s daily trading volume fell to only $2.6 billion on March 31.
Currently, Upbit had $3.8 billion in 24-hour trading volume on April 1.
Also read: Crypto exchange Bybit launches zero-fee model for P2P trading
Profit plummets
Dunamu, the parent company of Upbit, reported an 81% decrease in net income for 2023.
Dunamu disclosed a $23 million profit, marking a significant decline from the $123 million it earned during the same period in 2022.
The business blamed the decline in profits on a “sluggish investment market” during a recession. It also mentioned that a reason in the drop in earnings was the lower pricing of digital assets.
