**South Korean Crypto Exchanges Face Earnings Pressure as Trading Volumes Plummet Amid Market Slump**
Trading volumes on South Korea’s major crypto exchanges Upbit and Bithumb have fallen sharply, averaging just $1.88 billion daily in early November — the lowest level since January 2025. This decline comes after a strong third quarter where both exchanges reported massive gains, with Upbit’s operating profits soaring 180% to 235.3 billion won.
In 2025 alone, over 391 new tokens have been listed across top Korean exchanges, marking a 47% increase from the previous year. This surge in listings aims to bolster user engagement amid the current weak market environment.
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### What is Causing Earnings Pressure for South Korean Crypto Exchanges?
South Korean crypto exchanges are under significant earnings pressure primarily due to a sharp drop in trading volumes following a market downturn. After a booming third quarter fueled by rising digital asset prices, Bitcoin’s price plummeted below $95,000 — its lowest point in six months. Coupled with heightened global uncertainties, investor hesitation has dramatically reduced daily trading activity to levels unseen earlier in 2025.
This increased volatility heavily impacts revenue, as trading fees make up nearly all income for these platforms. With fewer trades occurring, exchanges like Upbit and Bithumb face shrinking fee-based earnings.
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### How Has the Recent Market Slump Affected Upbit and Bithumb’s Performance?
The market slump has severely affected Upbit and Bithumb. According to CoinGecko data, combined daily average trading volumes on both platforms dropped to around $1.88 billion from November 1 through mid-month. This is a significant decline from the $7.8 billion peak seen in January and even the $3-4 billion daily range observed in recent months.
Despite these recent challenges, Upbit’s operator Dunamu reported impressive third-quarter results: operating profits rose 180% year-over-year to 235.3 billion won (~$161.7 million), revenue surged 104% to 385.9 billion won, and net income quadrupled to 239 billion won. Similarly, Bithumb’s operating profits increased eightfold to 70.1 billion won, revenues grew 184% to 196 billion won, and net income jumped 34 times to 105.4 billion won.
These gains were originally driven by a rebound in digital asset prices, improved market sentiment following U.S. legislative advancements such as the Guiding and Establishing National Innovation for United States Stablecoins Act (GENIUS Act), Ethereum’s rally, and expectations of a Federal Reserve interest rate cut.
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### Challenges Weighing on Market Confidence
However, ongoing U.S.-China trade tensions, fading hopes for imminent interest rate cuts, and the aftermath of a $100 million Ethereum hacking incident have eroded investor confidence. This has pushed the market into an “extreme fear” state, as tracked by CoinMarketCap.
Bitcoin’s price has fallen approximately 25% from its October 6 peak of $126,210, severely drying up trading activity and raising concerns of an impending crypto winter. Industry officials emphasize that without diversified revenue streams, exchanges remain highly exposed to such market fluctuations.
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### Steps Toward Sustainability and Growth
To counteract subdued trading volumes, South Korean exchanges have accelerated token listings. According to APYWA, Korea’s top five exchanges — Korbit, Coinone, GOPAX, Upbit, and Bithumb — added approximately 391 new tokens between January 1 and mid-November 2025, a 47% increase compared to all of 2024. The pace of listings notably intensified in the second half of the year.
Despite these proactive efforts, sideways market trading has kept volumes muted. Industry experts stress that regulatory reforms are necessary to enable business diversification and reduce reliance on volatile trading fees. An industry official noted:
> “Without alternative revenue streams, exchanges will remain at the mercy of market volatility. While the phased approval of corporate participation in the crypto market is a positive signal, long-term sustainability requires regulatory reforms that allow for greater business diversification.”
Disclosures filed with South Korea’s Financial Supervisory Services confirm these trends, illustrating short-term challenges amid broader market headwinds.
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### Frequently Asked Questions
**What are the main revenue sources for South Korean crypto exchanges like Upbit and Bithumb?**
Trading fees dominate, accounting for approximately 98.2% of revenue at Dunamu (Upbit) and 98.3% at Bithumb. This reliance makes earnings highly sensitive to fluctuations in trading volumes.
**How might U.S. policy changes influence South Korean crypto exchange earnings?**
U.S. legislative developments, like the approval of the GENIUS Act, can improve global market sentiment, indirectly benefiting South Korean exchanges by boosting trading activity in assets such as stablecoins. However, ongoing U.S.-China trade tensions and shifting Federal Reserve interest rate expectations could counterbalance these positive effects, leading to continued earnings volatility.
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### Key Takeaways
– **Market Volatility’s Direct Impact:** Sharp declines in Bitcoin and Ethereum prices have halved trading volumes on major Korean exchanges, significantly reducing fee-based revenue streams.
– **Record Q3 Gains Now at Risk:** Upbit and Bithumb posted impressive profit increases in Q3 2025, but recent slumps to $1.88 billion in daily volumes threaten these gains without new strategic measures.
– **Diversification Urgently Needed:** Listing 391 new tokens in 2025 is a positive step toward engagement, but regulatory reforms enabling alternative revenue sources are critical to withstand crypto market downturns.
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### Conclusion
South Korean crypto exchanges are currently grappling with mounting earnings pressure due to declining trading volumes and heightened market volatility — a stark contrast to the record profits recorded in the third quarter by leaders like Upbit and Bithumb.
Global factors such as U.S.-China trade tensions and security breaches continue to weigh heavily on investor confidence. Given the sector’s heavy dependence on trading fees, diversification is imperative for sustained profitability.
Accelerated token listings and calls for regulatory reforms demonstrate how exchanges are adapting to current challenges. Looking ahead, investors should monitor Federal Reserve policy signals and legislative developments closely, as a rebound in digital asset prices could restore trading momentum and stabilize earnings.
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