From the time of the election of Donald Trump as the U.S. President-elect, the virtual asset market has been experiencing a boom, which has continued for over a month. During this period, Upbit, the largest exchange in Korea, has increased its market share, drawing attention.
According to CoinGecko, a virtual asset information provider, Upbit’s market share in the Korean Won virtual asset market rose from 56.5% just before the U.S. presidential election on November 5th to 78.2% on December 7th, an increase of 21.7 percentage points.
On December 4th, when the price of 1 Bitcoin was on the verge of surpassing $100,000 for the first time, Upbit’s market share even exceeded 80%.
During the same period, the market share of Bithumb, the second-largest exchange, shrank from 41.2% to 19.3%. The market shares of other exchanges like Coinone, Korbit, and GOPAX remained within the 0-1% range without significant changes.
Industry experts attribute this concentration at Upbit to its abundant liquidity. High liquidity facilitates smoother buying and selling of coins, attracting investor trading demand.
The competition over transaction fees between exchanges is also cited as a factor. Bithumb ended its free fee event, which began in early October, on November 17th. As a result, some Bithumb users likely migrated to Upbit.
However, if this trend continues, there is potential for renewed “monopoly” controversy surrounding Upbit.
Previously, Representative Lee Kang-il of the Democratic Party urged for measures to resolve what he described as Upbit’s monopoly in terms of the number of coins, deposits, sales, and fees during a national audit in October.
According to the Monopoly Regulation and Fair Trade Act, a single business entity is considered to be in a monopolistic state if its market share exceeds 50%, and it is subject to regulation.
In response, Kim Byung-hwan, Chairman of the Financial Services Commission, acknowledged the issue and stated that the Virtual Asset Committee would be formed to examine structural market issues and monopoly concerns comprehensively.
Given that U.S. President-elect Donald Trump, who will take office next January, is expected to propose measures to foster the virtual asset industry, the market boom is likely to continue for the time being, according to industry expectations.