South Korea's prominent cryptocurrency exchange, Upbit, observed a significant increase in its 24-hour trading volumes at the beginning of March, reaching a peak before declining to $3.8 billion in early April. March 5th marked a record-breaking day for the exchange, with approximately $15 billion in daily trades, the highest volume of the year.

The surge in trading activity on Upbit coincided with Bitcoin reaching a new high of $69,200, driven by substantial investments in new Bitcoin spot exchange-traded funds (ETFs) in the US. Upbit also saw an all-time high Bitcoin price, reaching 96,734,000 South Korean won, or $72,504, surpassing international levels.

Referred to as the 'Kimchi Premium,' this phenomenon highlights occasional higher Bitcoin prices on South Korean exchanges compared to global averages. However, this heightened trading activity was brief, with volumes dropping to $2.6 billion by the end of March.

According to CoinGecko, Upbit's trading volume stabilized at $3.8 billion on April 1st. Despite Dunamu, Upbit's parent company, experiencing an 81% decrease in net profit in 2023, with earnings of $23 million in late November, down from $123 million the previous year.

The decline was attributed to a slow investment climate and decreasing crypto asset values. Nevertheless, Dunamu is dedicated to expanding Upbit, securing a Major Payment Institution license from Singapore's central bank in January to provide crypto and fiat services in Singapore.

Key takeaways from this piece include the sensitivity of Upbit's trading volume to market trends and crypto asset prices, the impact of the 'Kimchi Premium' on Bitcoin pricing in South Korea versus global markets, and Upbit's resilience and expansion efforts despite economic challenges.

Despite the fluctuations in Upbit's daily trading volumes, these movements are reflective of broader market trends and the exchange's strategic responses to the evolving economic landscape.