South Korea’s two largest cryptocurrency exchanges, Upbit and Bithumb, experienced substantial drops in overall revenue during the first half of 2026. These results highlight the ongoing pressure from a prolonged downturn in Bitcoin and the wider digital asset market, which has sharply reduced trading activity across the country.
Dunamu, the operator of Upbit, reported consolidated revenue of 408.1 billion won, equivalent to roughly $289 million, for the six-month period ending in June. This marked a year-over-year decline of 49.1 percent.
Bithumb, the second-largest platform by market share, posted revenue of approximately 168.8 billion won, or about 119 million dollars, representing a nearly identical 48.7 percent decrease from the prior-year period.
Both sets of figures were released through mandatory filings submitted to South Korea’s Financial Supervisory Service electronic disclosure system.
The core driver of these declines was a steep contraction in trading volumes.
Cryptocurrency exchanges in South Korea derive the vast majority of their income from transaction fees charged on spot and other trades. When volumes fall, fee revenue falls in almost direct proportion.
Data covering the five major won-based exchanges showed combined trading volume of about 367 billion dollars in the first half of 2026, a reduction of more than 54 percent compared with the same period in 2025.
Lower price volatility in Bitcoin and many alternative tokens further discouraged active trading by the retail investors who dominate the Korean market.
Several external factors amplified the slowdown.
Sustained high interest rates in the United States encouraged capital to flow toward traditional equity markets, particularly high-growth areas such as artificial intelligence and semiconductor stocks.
As a result, both domestic and international investors redirected attention and funds away from virtual assets.
The cooling of speculative sentiment left order books thinner and reduced the frequency of trades on platforms like Upbit and Bithumb.Profitability metrics deteriorated even more sharply than revenue.
Dunamu’s operating profit for the first half fell by nearly 80 percent year over year.
Bithumb recorded an operating profit decline of more than 83 percent and ultimately posted a net loss exceeding 108 billion won, or roughly 70 million dollars.
The net loss at Bithumb was influenced not only by weaker fee income but also by non-operating items, including valuation adjustments on crypto holdings and certain provisions.
Customer deposit balances at both exchanges also declined, reflecting reduced capital committed to the platforms amid the quieter market environment.
Despite the shared challenges, competitive positions shifted modestly.
Upbit managed to increase its already dominant share of remaining trading activity as liquidity tended to concentrate on the largest venue during the downturn.
Bithumb’s relative market share among the top five exchanges edged lower.
Both companies have responded by tightening operating expenses where possible and exploring promotional or product initiatives aimed at stimulating user engagement.
However, the structural dependence on trading fees means their financial performance remains highly sensitive to overall market conditions and investor risk appetite.
These half-year results serve as a clear indicator of the state of one of Asia’s most active retail cryptocurrency markets.
After earlier periods of stronger volumes and elevated profitability, the first six months of 2026 demonstrated how an extended bear market can compress revenues and margins across the sector.
Any recovery in trading volumes will likely depend on improvements in global macroeconomic conditions, potential easing of interest rates, or a return of price momentum in digital assets.
Until then, the leading Korean exchanges face continued pressure on their primary income streams.
The figures underscore the cyclical nature of the crypto exchange business model and the importance of diversified revenue sources over the longer term. Market participants and regulators will continue to monitor subsequent quarterly disclosures for signs of stabilization or further contraction.