Cryptocurrency trading volumes in South Korea have dropped sharply, from surpassing USD trading volumes in Q1, KRW transactions have dropped quite significantly in Q2, according to a report from Kaiko.
Significant decline in crypto trading volume in South Korea in Q2
Weekly trading volume on major Korean exchanges such as Upbit, Bithumb, Coinone, and Korbit fell from an average of $35 billion in Q1 to just $6 billion in early June, an 83% drop. %. This decline was particularly heavy for Upbit, with its market share compared to its main domestic competitor, Bithumb, falling to 67%, its lowest since February.
![](https://public.bnbstatic.com/image/pgc/202406/77637ad0ae532b8b7c34538cb7bc4e10.png)
According to experts, reduced risk sentiment may have contributed to this decline, as higher-than-expected US inflation combined with a repricing of expectations for interest rate cuts by the Federal Reserve.
Unlike other exchanges, Upbit and Bithumb offer a large number of high-volume trading pairs. However, such popular assets are often small-cap altcoins driven by speculative interest, which does not always correlate with better liquidity conditions.
Compare liquidity conditions: Korean market vs US exchange
Unlike the Korean market, liquidity is increasing on US exchanges. One of the key indicators for market liquidity, the bid-ask spread, has dropped sharply on most US exchanges, showing that Bitcoin's liquidity has improved much.
![](https://public.bnbstatic.com/image/pgc/202406/9b60d8da1f24df58525cde9fdaf73a81.png)
Spreads have decreased from 2.3 to 1.9 basis points on Bitstamp, from over 1 to 0.3 basis points on Coinbase, and from 0.4 to 0.1 basis points on Kraken.
Source: https://tapchibitcoin.io/khoi-luong- Giao-dich-crypto-o-han-quoc-giam-manh-83-trong-q2.html