The South Korean cryptocurrency market has entered a new phase of growth, with domestic exchanges witnessing unprecedented trading volumes in early 2025. While global giants like Binance and Coinbase continue to dominate worldwide trading activity, local platforms such as Upbit and Bithumb are shaping a unique digital asset landscape tailored to Korean investor behavior.
This surge reflects more than just increased participation—it highlights a growing trend of regional diversification in crypto trading preferences, with certain altcoins gaining disproportionate traction in Korea compared to international markets.
Regional Exchanges Outpace Global Platforms in Local Volume
Despite Binance and Coinbase leading global rankings by 24-hour trading volume, South Korea’s crypto ecosystem remains largely homegrown. Upbit and Bithumb control the lion’s share of local trading activity, supported by user-friendly interfaces, strong regulatory compliance, and deep integration with the country’s banking infrastructure.
According to recent data, Upbit alone accounts for a dominant portion of Korean crypto transactions. Trading volume on both Upbit and Bithumb began rising steadily in late 2023 and peaked in early 2025—surpassing all previous records. January 2025 marked the highest daily trading volumes ever recorded on these platforms, signaling strong retail and institutional interest.
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Unique Asset Preferences: The Rise of ETC and Niche Tokens
While the top traded assets on Binance and Coinbase—Bitcoin (BTC), Ethereum (ETH), Solana (SOL), TIA, and OP—show significant overlap, South Korean exchanges display a distinct appetite for alternative digital assets.
One standout performer is Ethereum Classic (ETC), which has emerged as a major favorite among Korean traders. On Upbit, ETC ranks as the most-traded cryptocurrency by volume, outpacing even BTC and ETH. It also holds the fifth spot on Bithumb and sixth on Coinone.
More notably, 68.96% of all ETC trades globally are conducted in Korean won (KRW), according to Cryptocompare—a staggering concentration that underscores South Korea’s outsized influence on this asset’s market dynamics.
Additionally, ETC currently trades at a 4.65% premium on Upbit, slightly higher than Bitcoin’s 4.40% premium on the same exchange when compared to global average and weighted exchange rates. This persistent premium suggests sustained local demand and limited arbitrage efficiency across borders.
Localized Trading Behavior: The KRW Premium Effect
The Korean crypto market is known for its “Kimchi premium”—a phenomenon where prices on domestic exchanges rise above global averages due to high local demand and capital flow restrictions. In 2025, this effect remains evident, particularly for select tokens.
Beyond ETC and BTC, several other assets show significant KRW settlement ratios:
- Threshold Network Token (T): 80% of all T trades occur in KRW
- SUI: 23.85% of trading volume is denominated in won
- XRP: 29.40% settled in KRW
- WEMIX: A remarkable 80.18% of transactions use KRW
These figures highlight how deeply integrated certain projects are within the Korean digital economy. WEMIX, for instance, benefits from strong ties to the country’s gaming and blockchain entertainment sectors, driving localized adoption.
Upbit’s current top five traded cryptocurrencies are ETC, BTC, T, SUI, and SOL, while Bithumb’s leaders include BTC, SOL, ETH, XRP, and ETC. Coinone rounds out the landscape with BTC, XRP, WEMIX, ETH, and SOL at the top.
This divergence from global trends illustrates how regional sentiment, regulatory environments, and cultural factors shape crypto markets differently across geographies.
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Contribution to Global Liquidity
Though often viewed as isolated ecosystems due to capital controls and language barriers, Korean exchanges play a measurable role in global liquidity.
Collectively, Upbit, Bithumb, Coinone, and Korbit contributed 2.8% of global Ethereum (ETH) trading volume and 6.93% of Bitcoin (BTC) volume over a recent 24-hour period. These numbers may seem modest at first glance, but they represent substantial influence given South Korea’s relatively small population.
Moreover, the fact that these platforms can drive price movements in specific assets—such as ETC or WEMIX—demonstrates their outsized impact on niche markets.
Market Implications and Future Outlook
The surge in Korean crypto trading volume since late 2023 reflects growing confidence in digital assets despite global regulatory uncertainty. Investors are increasingly diversifying beyond traditional blue-chip pairs like BTC/USDT or ETH/USD, exploring altcoins with strong regional utility.
This trend suggests a maturing market where:
- Retail participation remains robust
- Localized blockchain projects gain traction
- Price discovery increasingly occurs across regional hubs rather than solely on centralized global exchanges
Experts view this as a positive indicator for long-term adoption in Asia. As blockchain technology integrates further into finance, gaming, and identity systems, domestic exchanges will likely serve as gateways for mass-market access.
Frequently Asked Questions (FAQ)
Q: Why is Ethereum Classic (ETC) so popular in South Korea?
A: The exact reasons aren't fully clear, but theories suggest strong community support, speculative interest, and early exchange listings on major Korean platforms helped cement ETC’s position. Additionally, its lower price point compared to ETH makes it attractive for retail investors.
Q: What causes the Kimchi premium in crypto prices?
A: The Kimchi premium arises when demand for crypto on Korean exchanges exceeds supply due to capital inflow limits and investor enthusiasm. Regulatory constraints make it difficult to quickly move funds abroad, allowing prices to rise above global averages.
Q: Are Korean exchanges safe for foreign investors?
A: Most major Korean exchanges comply with strict AML and KYC regulations. However, direct access for non-residents is limited due to banking restrictions. Some platforms offer international versions with reduced functionality.
Q: How do KRW trading pairs affect global crypto prices?
A: High KRW trading volume can create localized price distortions. For assets like ETC or WEMIX, Korean market sentiment may temporarily influence global prices until arbitrageurs correct discrepancies.
Q: Is the growth in Korean crypto trading sustainable?
A: Yes—if regulatory clarity continues and integration with real-world applications expands. The current trend reflects genuine user engagement rather than short-term speculation alone.
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Conclusion
South Korea’s crypto market has reached a pivotal moment in 2025, with Upbit and Bithumb driving record-breaking volumes and fostering unique asset demand patterns. From the unexpected rise of Ethereum Classic to the dominance of KRW-settled trades in niche tokens like T and WEMIX, the landscape reveals a sophisticated and active investor base.
As global attention turns toward regional market dynamics, understanding Korea’s role becomes essential for traders, developers, and analysts alike. The country’s ability to sustain premium pricing and drive altcoin innovation positions it as a key player in the next phase of crypto evolution.
Keywords: South Korea crypto market, Upbit trading volume, Bithumb exchange, Ethereum Classic ETC, Kimchi premium, KRW crypto trading, regional cryptocurrency trends