March 5th marked a significant milestone for Upbit, one of South Korea’s largest cryptocurrency exchanges, as it achieved a record-breaking trading volume of approximately $15 billion. However, this peak was short-lived, as the exchange’s 24-hour trading volume dropped to $3.8 billion at the beginning of April, according to CoinGecko.
The surge in daily trading volume on Upbit can be attributed to Bitcoin’s new all-time high of $69,200 on the same day. The rush was primarily fueled by significant investments in the newly established spot Bitcoin (BTC) ETFs in the United States.
CoinGecko data reveals that on March 5th, Bitcoin reached a new record high of 96,734,000 South Korean won (approximately $72,504) on Upbit, while its price remained below $70,000 in the rest of the world. This pricing disparity between South Korea and global markets is commonly referred to as the “Kimchi Premium,” named after the country’s famous fermented side dish. This discrepancy may have contributed to the increased daily trade volume on the exchange.
However, the surge in trading volume was short-lived, and by March 31st, Upbit’s daily trading volume had plummeted to $2.6 billion.
CoinGecko’s statistics indicate that as of April 1st, Upbit’s 24-hour trading volume stood at $3.8 billion. Meanwhile, the parent company of Upbit, Dunamu, experienced an 81% decline in net profit in 2023. On November 28th, Upbit reported a profit of $23 million, significantly lower than the $123 million profit achieved during the same period in 2022.
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