At the dawn of April, the 24-hour trading volume at Upbit, a major crypto exchange in South Korea, plummeted to $3.8 billion, marking a significant decline from its peak earlier in March.
On March 5, Upbit witnessed a remarkable spike in daily trading volume, soaring to nearly $15 billion, representing its highest volume recorded this year.
The surge in trading volume on March 5 can be linked to Bitcoin’s attainment of a new all-time high of $69,200, coinciding with the exchange’s peak trading activity.
The surge was largely fueled by substantial inflows into new spot Bitcoin exchange-traded funds (ETFs) in the United States, triggering heightened trading activity.
Despite Bitcoin’s global price hovering below $70,000, Upbit saw the digital asset peak at a new all-time high of 96,734,000 South Korean won (approximately $72,504) on March 5, contributing to the surge in trading volume.
This price discrepancy, known as the “Kimchi Premium,” underscores the variance between BTC prices on Korean exchanges like Upbit and international crypto platforms.
However, the heightened trading activity was short-lived, with Upbit’s daily trading volume plummeting to as low as $2.6 billion by March 31.
As of April 1, Upbit’s 24-hour trading volume stands at $3.8 billion, according to data from CoinGecko.
In 2023, Upbit’s parent company, Dunamu, reported an 81% decline in net profits, citing factors such as a sluggish investment market and the decline in digital asset prices.
Despite the profit downturn, Upbit pursued its expansion endeavors, securing a Major Payment Institution license from Singapore’s central bank on Jan. 9. This accreditation enables the exchange to offer a range of crypto and fiat-related services in Singapore.
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