South Korea's top five crypto exchanges see an 88% drop in daily trading volume

ChainCatcher report, according to Korea's JoongAng Ilbo, the combined daily trading volume of South Korea’s five major KRW-based virtual asset exchanges is approximately KRW 412.7 billion, an 88% decline compared to a year ago. The global total market capitalization of virtual assets has simultaneously contracted by 41% to $2.322 trillion. Dunamu, the country’s leading crypto company, saw its first-quarter revenue and operating profit decline by 55% and 78% year-over-year, respectively. Smaller exchanges are facing even greater challenges; Coinone, Korbit, and Gopax, which recorded operating losses last year, are expected to continue posting losses this year. Korbit has already sold off its holdings three times this year, liquidating 15 bitcoins and 60 ether tokens over the past ten days to generate approximately KRW 1.6 billion in cash. A director at Tiger Research stated that the current situation can be regarded as a “second crypto winter,” with a sharp contraction in total crypto market cap and virtually no new projects emerging. Despite the market downturn, institutional adoption of blockchain technology is accelerating, with key focus areas being tokenized assets and stablecoins. Major brokerage firms such as Future Assets have recently acquired stakes in exchanges, and the South Korean government has repeatedly signaled its determination to advance the legislation of the Digital Assets Basic Act, reflecting continued confidence in the medium- to long-term growth potential.