Upbit and Bithumb Trading Volumes Plunge Over 40% as Crypto Market Cools

South Korea’s two largest cryptocurrency exchanges, Upbit and Bithumb, are facing a sharp downturn in trading activity, with daily average volumes dropping more than 40% compared to the second half of 2025. The decline, reported by Electronic Times Internet, signals a significant cooldown in the domestic crypto market and raises questions about the near-term profitability of major exchanges.

Volume Declines by the Numbers

According to data from CoinMarketCap as of May 20, Upbit’s daily average trading volume in the first quarter of 2026 stood at approximately $1.55 billion. This represents a 38.8% decrease from the $2.53 billion daily average recorded in the second half of 2025. Bithumb experienced an even steeper contraction, with its daily average volume falling 44% to roughly $647.31 million over the same period.

When measured from January 1 to May 20, the trend becomes more pronounced. Upbit’s daily average volume dropped 45.5% compared to the H2 2025 baseline, while Bithumb’s fell 48.5% to approximately $599.77 million per day.

What Is Driving the Slowdown?

The volume decline appears to be part of a broader market cooldown following a period of heightened activity in late 2025. Industry observers point to several potential factors, including reduced retail speculation, regulatory uncertainty in South Korea’s crypto policy environment, and a general risk-off sentiment among traders. The absence of major bullish catalysts in early 2026 has also contributed to lower participation.

South Korea has historically been one of the most active crypto trading markets globally, often commanding premium prices for digital assets relative to global averages. A sustained volume drop at this scale could signal a structural shift in trader behavior rather than a temporary lull.

Implications for Exchange Profitability

Trading volume is the primary revenue driver for centralized exchanges, which rely on transaction fees. A decline of this magnitude directly pressures operating margins. Upbit and Bithumb have both invested heavily in compliance infrastructure, customer acquisition, and technology upgrades in recent years. With volumes falling, the return on those investments may take longer to materialize.

Smaller exchanges in South Korea could face even more acute challenges, as liquidity tends to concentrate on the largest platforms during market downturns.

Conclusion

The 40%+ decline in trading volume at Upbit and Bithumb marks a notable shift in South Korea’s crypto landscape after a strong second half of 2025. While the market may recover with renewed interest or regulatory clarity, the current trend underscores the cyclical nature of crypto trading and the vulnerability of exchange business models to changing market conditions. Investors and industry participants will be watching closely for signs of stabilization in the coming months.

FAQs

Q1: Why did Upbit and Bithumb trading volumes drop?
The decline is attributed to a broader market cooldown, reduced retail speculation, regulatory uncertainty, and a lack of major bullish catalysts in early 2026.

Q2: How much did Upbit’s trading volume fall?
Upbit’s daily average trading volume dropped 38.8% in Q1 2026 compared to H2 2025, and 45.5% when measured from January to May 20, 2026.

Q3: What does this mean for South Korea’s crypto exchanges?
Lower trading volumes directly reduce fee revenue, pressuring profitability. Larger exchanges like Upbit and Bithumb are better positioned to weather the downturn, but smaller platforms may struggle.