In the first quarter of 2024, the cryptocurrency markets in South Korea experienced a surge in trade volume, reaching levels not seen in over two years. Data from blockchain analytics firm Kaiko revealed that Korean won (KRW) trading volume surpassed that of the US dollar (USD) during this period, indicating a significant uptick in activity within the Korean crypto market.

One of the factors contributing to this surge in trade volume is the evolving competitive landscape among local exchanges. While Upbit has traditionally held a dominant position in the South Korean crypto scene, boasting an average market share of 82% over the past three years, recent developments have introduced more competition into the market. Both Bithumb and Korbit launched zero-fee campaigns towards the end of 2023, aiming to attract more traders to their platforms.

Despite Korbit's market share remaining relatively stable around 1% in 2024, Bithumb experienced a notable increase, tripling its market share in the months following the implementation of its zero-fee policy. However, despite the success of this strategy in driving trade volume, Bithumb faced a significant decline in revenue of 60% in 2023. This prompted the exchange to discontinue the zero-fee campaign in February 2024, just five months after its launch.

While there has been a slight decrease in KRW trading volumes in early April, market sentiment across the Asia-Pacific region is expected to receive a boost following the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong.

HashKey and Bosera International secured conditional approval from the Hong Kong Securities and Futures Commission for two spot crypto ETFs, marking a significant milestone for Asian investors. It is anticipated that the Hong Kong Stock Exchange will finalize preparations for product listing and related matters within approximately two weeks.