Bitcoin Trading Volume on Bithumb Surges to Almost $3 Billion in January, Outshining Upbit

Recent weeks have seen a marked uptick in cryptocurrency engagement within South Korea, as indicated by Kaiko’s insights. The firm highlights a pronounced increase in Bitcoin volume on Bithumb. This comes as a surprise since the exchange implemented a zero-fee trading model some months prior.

It’s reported that Bithumb’s Bitcoin activity may be nearing a substantial $3 billion benchmark in traded value.

Bitcoin Trading Soars on Bithumb in Recent Weeks

Charting a course for competitive advantage, Bithumb led the charge amongst Korean exchanges by abolishing trading fees, an initiative aimed to bolster its footprint in a market where Upbit holds sway. Whereas Bithumb once levied charges between 0.04% and 0.25%, it has since October of the prior year welcomed all digital currency transactions fee-free.

Notably, this decision entailed sacrificing their main revenue stream at a time when Bithumb’s financials disclosed a second-quarter operational shortfall of 3.4 billion won (about $2.5 million), as noted in an external report. Despite a deterioration in profits, Bithumb strategically focused on customer acquisition rather than immediate fiscal gains. The zero-fee policy evidently captured investor interest.

Initial growth in market share was short-lived, with Bithumb reverting to prior market standings as Upbit’s holding remained strong with an 80% stake just before year’s end. Upbit’s trade volumes swiftly bounced back after a modest downturn.

Current figures, however, showcase Bithumb taking a substantial lead over Upbit with respect to Bitcoin trades, touching nearly $3 billion in January. Upbit’s Bitcoin volumes, conversely, trailed with less than $1 billion.

Bithumb’s remarkable trade volume for Bitcoin aligns with significant purchase activity by local retail investors, a sentiment mirrored by the exceptional Korean Premium value, as detailed by an internal source. Together with other major exchanges in South Korea, Bithumb realized peak trading activity early in January 2024.

Anticipation Building for Bithumb’s IPO in 2025

Bithumb is poised for a noteworthy entry into the KOSDAQ, often likened to America’s Nasdaq, planning its stock market debut in late 2025. This stands to herald the company’s initiation into the public trading sphere of South Korea’s stock exchanges.

Though Bithumb has yet to formally declare its IPO, its connection with Samsung Securities as a possible underwriter signals strides being taken toward that next phase, as noted in an internal release.