Bithumb Bitcoin Trading Skyrockets To Nearly $3 Billion In January, Leaving Upbit In The Shadows

Last month saw a significant increase in crypto trading in South Korea. Kaiko's latest analysis shows a significant increase in Bithumb's Bitcoin volume, even though zero-fee trading was launched several months ago.

The trading volume of the main crypto asset on the platform seems to be around $3 billion.

Bithumb's Bitcoin dominates January trading

Bithumb took a strategic initiative by becoming the first major Korean exchange to eliminate all transaction fees. This move is seen as an effort by the company to significantly expand its market presence in the domestic landscape occupied by Upbit. Bithumb previously charged trading fees ranging from 0.04% to 0.25%. The implementation of the zero-fee policy for all sponsored digital assets began in October last year.

This decision is particularly noteworthy as the exchange has largely abandoned its source of income. Additionally, Bithumb reported an operating loss of 3.4 billion won ($2.5 million) in the second quarter of the year. It is true that the platform is more focused on expanding its customer base than revenue collection, especially since its recurring revenue is declining. The new policy immediately caught the attention of investors.

While the crypto exchange was able to increase its market share for a short period of time, it eventually returned to its pre-policy level. After a slight decline, Upbit's trading volume picked up again, and at the end of the year the platform still had an 80% market share.

However, recent data suggests that Bithumb has upped its game and surpassed Upbit in Bitcoin trading volume. In January, Bithumb's Bitcoin volume approached $3 billion. On the other hand, Upbit's funds have been limited to less than $1 billion during the same period.

Bithum's #BTC volume has exploded in recent weeks despite starting zero fee trading months ago pic.twitter.com/TcAgHrtOaM

— Kaiko (@KaikoData) January 18, 2024

The latest burst on Bithumb comes amid strong buying pressure from retail investors in South Korea, which has seen a record high in Korean premium prices. In fact, Bithumb, along with other top cryptocurrency exchanges in the country, showed high trading volume in the first week of January 2024.

Bithumb IPO in 2025

By the end of 2025, Bithumb will debut on KOSDAQ, South Korea along with Nasdaq in the United States. South Korean stock market.

While there has been no formal announcement by Bitcoin, the recent selection of Samsung Securities as a potential underwriter strongly suggests that it is headed for the IPO process.