Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Bithumb struggles to catch up with Upbit
Upbit operator Dunamu CEO Oh Kyoung-suk, left, and Bithumb CEO Lee Jae-won / Courtesy of Dunamu and Bithumb
By Lee Yeon-woo
As the crypto market regains momentum, Upbit is once again expanding its market share at the expense of Bithumb by boosting customer incentives and intensifying marketing efforts, industry officials said Tuesday.
According to data from CoinGecko, Upbit's domestic market share — which had hovered in the 60 percent range until last month — has recently climbed back near the 70 percent mark. Notably, its market share surged briefly to 74 percent on Friday, coinciding with Bitcoin (BTC) reaching a new all-time high and Ripple (XRP) jumping more than 20 percent.
This surge appears to have undermined Bithumb’s aggressive marketing push, which began last year. Bithumb's market share, which stood at just 10 percent in 2023, surpassed a monthly average of 30 percent in June for the first time this year. However, it has since slipped back into the 20 percent range.
Upbit seems to be benefiting from the recent trading momentum, supported by its broad selection of listed cryptocurrencies and large user base. According to a crypto analyst identified as Dom, over 70 percent of the net buying volume for XRP came from Upbit.
"During market upswings, Korean retail investors prefer to use Upbit due to its stronger liquidity and higher security," said Notch Ventures, a Web3 accelerator. "In December 2024, as BTC approached its historical high, Upbit's market share soared from 56.5 percent to 78.2 percent, while Bithumb's market share fell from 41.2 percent to 19.3 percent."
Upbit has also begun ramping up its marketing efforts in a strategic shift from its previously low-key approach. The exchange increased its advertising and promotional spending to over 8 billion won ($5.79 million) in the first quarter of this year — a figure comparable to Bithumb's budget for the same period.
The exchange's recent push to attract VIP customers has also contributed to its momentum.
Starting this month, Upbit launched a concierge-style program, selecting high-volume traders each quarter to receive exclusive gifts such as premium Korean beef and eco-friendly food products.
"We will drive Upbit's next phase of growth through bold investments in technology and security, continuous service innovation and global expansion," Dunamu CEO Oh Kyoung-suk said on June 27 during a temporary shareholder meeting regarding his appointment.
Concerning its falling market share, Bithumb said it will continue to engage with investors and potential users through a variety of marketing campaigns and events.
"Moving forward, we will strive to build trust and brand loyalty among existing users, while offering a positive first experience to potential customers who may still be unfamiliar with virtual assets," a Bithumb spokesperson said.