According to a recent study by Kaiko Research, South Korean cryptocurrency exchanges are engaged in a fierce battle over fees. Exchanges are eager to gain popularity by imposing minimal costs at the same time.
Market dynamics are driven by fee competition
According to the estimate, Upbit will be the top exchange in the South Korean market starting in 2021. Over the previous three years, the cryptocurrency exchange has maintained an average market share of 82%. On the other hand, given the recent spike in the value of digital currencies, we cannot overlook the fierce rivalry.
The entry of Bithumb and Korbit, two significant regulated platforms from South Korea, into the market in 2023 was the primary driver of the current rivalry.
Amid charge schemes, the South Korean Won exceeds the US Dollar.
As per the research, Bithumb's market share increased in the months after its zero-fee policy was introduced in October 2023, whilst Korbit's market share remained relatively unchanged, averaging less than 1% in 2024.
"Overall, trade volume on Korean markets has increased and reached its highest level in more than two years in early March thanks to the improving macroeconomic environment and intense competition among Korean exchanges."
Eight months after its debut, on February 5, Bithumb ended its zero-fee program due to a 60% decline in exchange revenue in 2023. A noteworthy component of the analysis said that during the first quarter of 2024. South Korean Won(KRW) made a surprising turn as it surpassed the United States Dollar (USD) in terms of cumulative trade volume following the zero-fee tactics used by the exchanges.
April 2024, Cryptoniteuae