South Korea Crypto Trading Volume Falls 20.3% Amid Summer Slowdown

South Korea’s cryptocurrency market is experiencing a notable decline in trading volume, primarily attributed to the seasonal summer slowdown. According to recent data, the combined daily trading volume across the country’s leading exchanges—Upbit, Bithumb, Coinone, and Korbit—dropped to 3.54 trillion won ($2.55 billion) on a single day, reflecting a 20.3% decrease from the previous day’s total [1]. This decline is consistent with historical patterns where trading activity tends to wane during the summer months due to holidays and reduced market participation [1].

Upbit continues to dominate the South Korean crypto market, accounting for 65.8% of the reduced trading volume. Bithumb follows closely with 30.8%, while Coinone and Korbit collectively make up less than 4% of the market [1]. Despite the overall volume decline, the market share distribution remains relatively stable, indicating that the dominant players have not lost their grip during this downturn.

The drop in trading activity aligns with broader seasonal trends observed in global financial markets, often referred to as the “summer doldrums.” During this period, both retail and institutional investors typically reduce their participation, leading to lower liquidity and fewer price movements. The decline in volatility further discourages active trading, as fewer opportunities for profit emerge [1].

The implications of this reduced volume extend to exchanges, which rely heavily on trading fees for revenue. A significant drop in volume directly affects their financial performance, while traders may find fewer opportunities for short-term gains. However, for long-term investors, the lower volume could present an opportunity to accumulate assets at more stable prices [1].

Market analysts expect a rebound in activity as the summer vacation season ends. The return of retail and institutional traders, combined with potential new market catalysts such as regulatory updates or blockchain developments, could drive volume back to pre-summer levels. Additionally, the introduction of new products or features by exchanges may further stimulate user engagement [1].

South Korea’s crypto market is also influenced by the “Kimchi Premium,” where cryptocurrencies sometimes trade at higher prices locally than globally. This premium can serve as a draw for traders, contributing to the region’s unique market dynamics [1].

While the current volume drop is significant, it appears to be a temporary reflection of seasonal behavior rather than a sign of long-term market weakness. As the market adjusts, participants will be watching for signs of recovery and renewed interest.

Source:

[1] South Korea Crypto Volume Plunges: Unveiling the Summer Slowdown Impact (https://coinmarketcap.com/community/articles/688ff471d921332cbcd2a27d/)