Upbit and Bithumb Surge 33% and 131% as Coinone Sells Assets Amid Liquidity Crisis

Korean cryptocurrency exchanges Upbit and Bithumb have experienced notable growth in 2025, while smaller exchange Coinone grapples with liquidity issues and potential acquisition speculation. The market is increasingly dominated by a few key players, leaving limited room for smaller exchanges to compete effectively [1].

Dunamu, the operator of Upbit, saw its private stock price rise 33% year-to-date, reaching 240,000 won ($173), with an estimated market capitalization of 8.26 trillion won ($5.96 billion). Bithumb, operated by Bithumb Global, outperformed with a 131% increase to 238,000 won ($172). Both exchanges reached peak valuations on July 4, with Dunamu hitting 258,000 won and Bithumb reaching 275,000 won during the summer rally. The valuation growth reflects renewed optimism in the cryptocurrency market, particularly as Bitcoin continues to set yearly highs [1].

Both Upbit and Bithumb are preparing for potential public offerings. Bithumb has set its sights on a Kosdaq listing by late 2025, leveraging its strong market position and robust trading volumes to support its ambitious plans [1].

Meanwhile, Coinone struggles with a shrinking market share of just 3%, far behind Upbit and Bithumb. To manage its liquidity needs, the exchange announced plans to sell $2.96 million worth of cryptocurrencies, representing about 10% of its total digital asset holdings. The sale is conducted under new regulatory guidelines introduced in May, which allow exchanges to liquidate assets for operational funding while ensuring transparency and limiting sales to top-20 cryptocurrencies by market capitalization [1].

The funds from the asset sale are intended to cover operational expenses such as personnel costs, rather than supporting expansion or infrastructure. This move signals an urgent need for liquidity amid ongoing financial difficulties. Coinone reported $4.4 million in operating losses last year, marking three consecutive years of deficits. Co-CEO Lee Sung-hyun now reportedly manages multiple roles following workforce reductions, leading industry observers to speculate that the company may be positioning itself for a potential acquisition [1].

The cryptocurrency exchange sector is becoming more competitive, with fee-based revenue models heavily dependent on trading volumes. The dominance of Upbit and Bithumb—capturing 63% and 33% of the market, respectively—leaves little room for smaller exchanges like Coinone to sustain profitability or scale operations effectively [1].

The contrasting fortunes of Upbit and Bithumb compared to Coinone highlight the shifting dynamics of the Korean crypto market. As larger exchanges continue to thrive, smaller players face mounting pressure to adapt strategically or risk further decline in an increasingly concentrated landscape [1].

Source: [1] Upbit and Bithumb Thrive Amid Market Concentration, While Coinone Faces Liquidity Challenges and Potential Acquisition Talks

(https://en.coinotag.com/upbit-and-bithumb-thrive-amid-market-concentration-while-coinone-faces-liquidity-challenges-and-potential-acquisition-talks/)