Daily trading volume across South Korea's five largest won-based cryptocurrency exchanges has plunged by 88% year-on-year, according to data reported by ZDNet Korea and WuBlockchain. On July 20, combined 24-hour volume stood at just 412.7 billion won (approximately $280–297 million), a dramatic slide from the heights seen in the previous year.
The sharp decline is primarily driven by a sustained slump in cryptocurrency prices. Bitcoin, which had traded above $60,000 earlier in the year, has fallen significantly, eroding retail investor confidence and reducing speculative activity. Korbit, one of the major local platforms, sold 15 BTC and 60 ETH to fund its own operations, a clear sign of the liquidity strain that exchanges are facing.
Market observers note that the downturn could trigger a vicious cycle: weaker exchange earnings may force further asset sales, putting additional downward pressure on prices and prolonging the dip. South Korea, historically one of the world’s most active retail crypto markets, is feeling the pain acutely because of its heavy dependence on individual traders. The data also raises concerns about the financial health of smaller platforms, with consolidation or closures possible if the “crypto winter” persists.
Regulators, who have been tightening oversight, may now face the challenge of balancing consumer protection with market stability in an environment of thin liquidity and dwindling participation.
