Upbit's Performance Declines…Is the Golden Age of Coin Exchanges Over?

▲ Upbit market's lean season/AI generated image ©

As Upbit's performance declines, clear signs of 'growth slowdown' are emerging across domestic virtual asset exchanges. With a simultaneous decrease in trading volume and a fall in the value of held assets, major exchanges, including Upbit, are uniformly experiencing performance pressure.

According to electronic disclosures from the Financial Supervisory Service on the 15th, the operating profit of the five major domestic exchange operators—Dunamu, Bithumb, Coinone, Korbit, and Streami—totaled 1.0034 trillion won last year, a 22% decrease compared to the previous year. Revenue decreased by 1% to 2.2687 trillion won, and net profit fell by 24% to 787 billion won, highlighting a more pronounced deterioration in profitability.

Dunamu, which operates Upbit, led the overall decline. Dunamu's revenue decreased by 10% to 1.5578 trillion won, and its operating profit fell by 27% to 869.3 billion won. Net profit also decreased by 28% to 708.9 billion won. The decrease in trading volume was a direct hit, and the valuation of its held Bitcoin also dropped by 11% from 2.0985 trillion won to 1.8687 trillion won.

Bithumb maintained external growth but its profit structure faltered. While revenue increased by 31% to 651.3 billion won and operating profit grew by 22% to 163.5 billion won, net profit plummeted by 52% to 78 billion won. This was largely due to the valuation gains and losses of held virtual assets turning from a 51.8 billion won profit to a 24.7 billion won loss.

The situation for smaller exchanges is even more challenging. Coinone's revenue slightly increased to 45.5 billion won, but it recorded an operating loss of 6.3 billion won, and net profit plunged by 83% to 2.7 billion won. Korbit also reported an operating loss of 15.4 billion won and a net loss of 15.8 billion won despite revenues of 9.8 billion won. Streami, which operates Gopax, saw its revenue nearly halve to 4.33 billion won, and its operating loss expanded to 7.7 billion won.

The market environment itself has also deteriorated. According to the Bank of Korea, the average daily trading volume of domestic virtual assets as of December last year was around 2.7 trillion won, a sharp decrease compared to 17.1 trillion won in December 2024. Although it showed signs of recovery at one point, it has since returned to a downward trend amidst a general contraction in risk asset investment sentiment.

Domestic exchanges, led by Upbit, still dominate the market, but the simultaneous exposure of revenue instability due to a trading volume-dependent structure and asset price volatility is increasing market vigilance regarding the possibility of the 'golden age ending'.

*Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses based on it. The content should be interpreted solely for informational purposes.*