[Analysis] Korean Exchanges Are Still Making A Lot of Money

Hello, this is Analyst101.

Recently, the cryptomarket fell dramatically.

Even Ethereum’s current price is only 1/6th of its height back in December and January.

“It’s as if Dexter came by… “

There are also many competition cryptocurrency exchanges including exchanges that pay out dividends.

“Exchanges that pay dividends are popular these days. Source: bitboysesibong”

However, a closer look at Korean exchanges Bithumb, Upbit, Coinone, and Korbit show that these exchanges are still raising massive revenues.

Because the exchanges get most of their revenues via trading fees, trading volume is crucial.

I found some interesting insights by visualizing following data from COINASS(www.coinass.com).

Following is a chart that shows daily trading volume (in BTC) for Bithumb, Korbit, Coinone, and Upbit.

As the chart shows, the trading volume increased sharply in 2017 and 2018 compared to 2015 and 2016. In addition, starting February 2018, Upbit is dominating the market. However, recently, Bithumb reclaimed its dominant status.

Following is a chart that shows daily trading volume (in USD) for Bithumb, Korbit, Coinone, and Upbit.

This chart is similar to the chart above, but we can see the difference between trading volume in 2015, 2016 and 2017, 2018 is even greater.

Since it’s hard to see, I will change them to bar charts. Following is a chart that shows daily trading volume (in BTC) for Bithumb, Korbit, Coinone, and Upbit.

We can see that while the trading volume decreased in 2018 compared to the previous year, the trading volume remains higher than 2015 and 2016.

Following is a chart that shows daily trading volume (in USD) for Bithumb, Korbit, Coinone, and Upbit.

The data conveys that trading volume in 2017 and 2018 is several times greater than trading volume in 2015 and 2016. In the case of Bithumb, although the trading volume fell in 2018, its trading volume is over 73 times compared to in 2015. Since 2018 data is as of September 9th, the difference is likely to be larger if the data is later adjusted.

The reason why the difference in trading volume is much greater when we examine USD instead of BTC is because the price of Bitcoin and Ethereum rose rapidly. On January 1st of 2015, the price of Bitcoin was $315, but the current price is $6600.

Conclusion: While the trading volume decreased compared to the previous year, Korea’s major exchanges are still earning huge revenues compared to 2015 and 2016.

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