Over the past month, South Korea has witnessed a significant uptick in cryptocurrency trading. According to Kaiko’s recent analysis, there is a substantial surge in Bithumb’s Bitcoin volume, despite the implementation of zero-fee trading several months ago. The trading volume for the leading cryptocurrency on the platform is on the verge of reaching an impressive $3 billion.
Bithumb takes center stage in January’s trading scene with dominant Bitcoin activity.
Bithumb strategically positioned itself as a trailblazer by becoming the first major Korean exchange to eliminate all transaction fees, a move aimed at expanding its market presence in a landscape predominantly led by Upbit. The exchange, which previously imposed trading fees ranging from 0.04% to 0.25%, initiated the zero-fee policy for all supported digital assets in October of the preceding year.
This decision is particularly significant as it marked a departure from Bithumb’s primary revenue source, considering the reported operating loss of 3.4 billion won ($2.5 million) in the second quarter of that year. Clearly prioritizing customer base expansion over immediate revenue gains, the platform attracted investor attention with its unconventional move.
Despite an initial increase in market share, Bithumb’s trading volume reverted to pre-policy levels, and Upbit regained its dominance. By the end of the year, Upbit maintained an 80% market share.
However, recent data indicates a resurgence for Bithumb, surpassing Upbit notably in Bitcoin trading volume. In January, Bithumb’s Bitcoin volume approached $3 billion, while Upbit’s remained below $1 billion during the same period.
The recent surge in Bitcoin volume on Bithumb coincides with robust buying interest from retail investors in South Korea, evident in the record-high Korean Premium value. Bithumb, alongside other leading cryptocurrency exchanges in the country, recorded their peak trading volumes during the initial week of January 2024.
Bithumb IPO in 2025
Bithumb is gearing up for its inaugural appearance on the KOSDAQ, South Korea’s counterpart to the Nasdaq in the United States, anticipated in the latter part of 2025. This step would establish it as the digital asset company pioneering the path to becoming publicly traded on the South Korean stock market.
While Bithumb has not officially declared its intentions, the recent choice of Samsung Securities as a potential underwriter strongly suggests a trajectory towards the IPO process.