Upbit operator Dunamu's operating revenue dropped 49.1% to 408.1 billion won. Bithumb swung to a net loss of 108.7 billion won amid a 30% Bitcoin decline and equity rotation.
Alpha Score of 49 reflects weak overall profile with strong momentum, poor value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
South Korea's two largest crypto exchanges posted steep revenue and profit declines in the first half of 2026 as trading volumes collapsed and investors fled to equities. The downturn hit Dunamu, the operator of Upbit, and Bithumb, with both reporting drops of roughly 50% in operating revenue compared with a year earlier.
Dunamu's consolidated operating revenue fell 49.1% to 408.1 billion won ($289 million), the company said. Operating profit plummeted 79.7% to 111.5 billion won ($79 million), and net profit dropped 74.1% to 108.4 billion won ($77 million). The exchange attributed the decline to a global contraction in digital asset liquidity and fading investor sentiment.
Bithumb fared worse on the bottom line. Operating revenue slid 48.7% to 168.8 billion won ($120 million), and operating profit cratered 83.4% to 14.9 billion won ($11 million). The exchange swung to a net loss of 108.7 billion won ($77 million), reversing a net profit of 55 billion won ($39 million) a year earlier. Nearly all of its revenue came from trading fees, according to its financial statement.
The broader market environment was punishing. Bitcoin dropped more than 30% in the first half, sliding from around $90,000 to roughly $60,000. Ethereum fared even worse, declining from $3,000 to about $1,600. The combined trading volume across South Korea's five licensed exchanges, including Upbit and Bithumb, fell 49.5% year-over-year in the second quarter to $146.43 billion, according to Bitwatch.
Several factors weighed on the industry. Delays in the Clarity Act, Strategy's Bitcoin sales, and sizable outflows from U.S. crypto ETFs contributed to the weakness. Meanwhile, South Korean investors redirected capital toward domestic equities. The KOSPI more than doubled in the first half, driven by strong semiconductor momentum from Samsung Electronics and SK Hynix.
Despite the downturn, both exchanges continued advancing long-term plans. Dunamu is progressing through a share-swap with Naver Financial that would make it a wholly owned subsidiary, with a potential Nasdaq listing targeted within five years. Hana Financial Group and Samsung affiliates acquired meaningful stakes this year. Bithumb is preparing for an IPO in 2028, focusing on internal control upgrades and a preliminary listing review in 2027. It also attracted interest from Kiwoom Securities and expanded internationally through a partnership with SSI Digital in Vietnam.
The next catalyst for the sector is the Clarity Act's progress and the year-end crypto tax debate, which could either lift or suppress investor confidence. A recovery in Bitcoin and Ethereum prices could reignite trading volumes and improve exchange revenues. Further price declines, continued equity outperformance, or new regulatory hurdles would deepen the pressure.
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