Notable Surge in Bithumb’s Bitcoin Trading Volume
In South Korea, there has been a significant increase in crypto trading, particularly on Bithumb. According to Kaiko’s analysis, the trading volume of Bitcoin on the platform is approaching $3 billion, despite the introduction of zero-fee trading a few months ago.
Bithumb’s Strategic Move to Eliminate Transaction Fees
Bithumb, one of the major Korean exchanges, made a strategic decision to remove all transaction fees. This move aimed to expand its market presence in a landscape dominated by Upbit. Previously, Bithumb charged trading fees ranging from 0.04% to 0.25%. The implementation of zero-fee trading for all supported digital assets began in October last year.
This decision is significant as it means that Bithumb gave up its primary source of revenue. Despite reporting an operating loss in the second quarter of that year, the platform prioritized expanding its customer base over collecting revenue. Investors took notice of this new policy.
Bithumb’s Bitcoin Dominance
Although Bithumb initially increased its market share after implementing zero-fee trading, it eventually returned to its previous level. Upbit’s trading volume rebounded, and by the end of the year, it maintained an 80% market share. However, recent data shows that Bithumb has surpassed Upbit in terms of Bitcoin trading volume. In January, Bithumb’s Bitcoin volume reached $3 billion, while Upbit remained below $1 billion during the same period.
Retail Investors Drive Increased Bitcoin Volume
The surge in Bitcoin volume on Bithumb can be attributed to strong buying pressure from retail investors in South Korea. This is evident from the record high Korean Premium value. Not only Bithumb, but other top cryptocurrency exchanges in the country also experienced their highest trading volumes in the first week of January 2024.
Bithumb’s IPO Plans
In the latter part of 2025, Bithumb is planning to debut on the KOSDAQ, South Korea’s equivalent of the Nasdaq. This move would make Bithumb the first digital asset company to become publicly traded on the South Korean stock market. While there hasn’t been an official announcement from Bithumb, the selection of Samsung Securities as a potential underwriter suggests progress towards the IPO process.
Hot Take: Bithumb’s Rise in Bitcoin Trading Volume and Future IPO Plans
Bithumb has experienced a significant increase in Bitcoin trading volume, surpassing its competitor Upbit. The introduction of zero-fee trading and a focus on expanding its customer base played a crucial role in this surge. Moreover, retail investors in South Korea have contributed to the record-breaking Bitcoin volume on Bithumb. With plans to go public on the KOSDAQ, Bithumb aims to solidify its position as a leading digital asset company in South Korea.
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