Upbit Corners 72% of S Korean Crypto Market as Smaller Exchanges ‘Face Extinction’

South Korean industry officials are once again voicing concerns that the crypto exchange Upbit may be a de facto monopoly, with smaller competitors’ market presence becoming “insignificant.”

The South Korean newspaper Seoul Kyungjae reported that, per data from the regulatory Financial Supervisory Service (FSS), Upbit’s share of total domestic crypto trading volumes was 71.6% in the first six months of 2025.

The platform’s operator, Dunamu, is on the verge of a merger with Naver, the country’s biggest internet company.

And, per the FFS data, customers used Upbit’s platform to execute 833 trillion won ($642 billion) worth of transactions in the first half of the year.

Upbit: Crypto Market Dominance in S Korea

The combined total for domestic exchanges was 1,162 trillion won ($895 billion). Following behind Upbit was its closest and fiercest rival Bithumb, with 300 trillion won ($223 billion; 25.8% of the market).

Bithumb is aiming to become the first South Korean crypto exchange to go public. The firm is eyeing a 2026 NASDAQ debut.

In recent months, analysts have talked of Bithumb intensifying its efforts to claw back market share from Upbit.

But the latest figures appear to show that Upbit’s lead over its rival is still substantial, even prior to the proposed Naver deal.

However, the figures for smaller exchanges made for grim reading. Coinone’s volume was just 20.8 trillion won ($16 billion; 1.8% of the market share).

The volume figures for Korbit, the country’s oldest crypto exchange, were 5.5 trillion won ($4.01 billion; 0.5%). GOPAX’s figures were 2.8 trillion won ($2.15 billion; 0.2%).

Smaller Exchanges: Becoming ‘Insignificant?’

The newspaper wrote: “The domestic crypto market has effectively solidified into an Upbit monopoly.”

Seoul Kyungjae added that Coinone, Korbit, and GOPAX’s trading volumes were “negligible, rendering their presence in the market insignificant.”

The FSS submitted the data following a request from the People Power Party lawmaker Lee Heon-seung.

The regulator also provided average daily trading volume figures for the first half of the year. And these produced similarly uncomfortable reading for smaller exchanges.

Upbit recorded an average of 4.6 trillion won ($3.36 billion) per day, with Bithumb posting 1.6 trillion won ($1.2 billion).

But smaller exchanges’ daily volumes were just a fraction of this. Coinone’s average was around 100 billion won ($77 million), Korbit’s 30 billion won ($23 million), and GOPAX just 10 billion won ($7.7 million).

For Korbit, the drop-off is sharp. The exchange’s daily average was over 100 billion won as recently as 2022.

The majority of trading on GOPAX, meanwhile, chiefly comprises crypto-to-crypto trades, the media outlet wrote.

User Numbers Also Stark for Smaller Platforms

Worse still was the data on user numbers. Of a total of 10.17 million users, 53% held Upbit accounts, and 37% used Bithumb.

But the remaining three exchanges’ combined user base accounted for just 990,000 users, or 10% of the total.

The newspaper wrote that industry insiders predict the gap may widen yet further, particularly if the Naver deal goes though and Bithumb lists on NASDAQ.

An unnamed crypto exchange official told the outlet:

“If a specific exchange effectively monopolizes listing policies and fee structures, that could spread systemic risks to the entire market. The financial regulators must ensure a minimum level of fair competition. If not, investors will be left with a diminishing set of options.”

Lawmakers have repeatedly warned that Seoul is not doing enough to prevent Upbit from becoming a monopoly.

However, in April last year, the platform’s dominance peaked at over 80%.

Observers noted that its trading volume figures were approaching those of US behemoths such as Coinbase.

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