Upbit and Bithumb report 50% declines in H1 revenue, reflecting market contraction

What happened

Upbit and Bithumb each saw their first‑half 2026 revenue fall about 50% as crypto trading volumes slumped, while South Korean investors moved money into domestic stocks and the KOSPI more than doubled.

Confirmed

Global impact / market context

The revenue drop signals weaker demand for crypto trading, which can shrink exchange profit margins and lower their valuations, pushing investors to compare crypto platforms with traditional equities for overall risk assessment and future return expectations.

Analyst inference

South Korean investors are reallocating capital from crypto assets to domestic equities, as reflected by the KOSPI’s more than double increase in the first half of 2026, indicating a broader preference for stable, regulated markets.

Analyst inference

What to watch

1. Watch whether Upbit and Bithumb can trim operating expenses or launch new fee‑based services, such as staking or lending, to offset the loss of trading‑fee revenue. Analyst inference
2. Monitor any Korean regulatory updates that could relax or tighten rules on cryptocurrency exchanges, as such changes may directly influence future trading volumes and compliance costs. Analyst inference
3. Observe the continued performance of the KOSPI and whether investors keep shifting funds from crypto to equities, which would further compress crypto market size and revenue prospects. Analyst inference

Evidence

• theblock.co