-1-640x358.jpg&w=1200&q=75)
Kaiko Research found that liquidity on South Korea’s crypto exchanges is more complex than headline trading volumes suggest.
The report defined liquidity as the ability to execute large trades quickly near market prices without causing disruption.
Kaiko said liquidity must be assessed across multiple metrics including volume, bid-ask spreads, market depth and slippage.
Analysts warned that trading volume often spikes during stress events when execution quality deteriorates.
Bid-ask spreads were identified as a key indicator of execution cost and market maker risk during volatile periods.
Kaiko noted that tick-size rules on Korean exchanges influence liquidity by widening minimum spreads but concentrating depth.
Larger tick sizes on KRW markets were found to support visible liquidity for retail-driven trading flows.
Market depth was highlighted as an important measure but one that can be distorted by fleeting or hidden orders.
Slippage analysis was used to assess the gap between expected and actual execution prices.
Kaiko said slippage varies widely by exchange, asset and time of day.
Upbit accounted for around 70% of total trading volume in 2025, significantly outperforming domestic rivals.
The exchange showed deeper order books and lower execution friction than competitors such as Bithumb and Coinone.
Major trading pairs including BTC-KRW and XRP-KRW reinforced Upbit’s role as the primary liquidity hub.
Kaiko warned that zero-fee trading models can lead to wider spreads as implicit costs shift to traders.
Token-specific factors such as the Kimchi premium were found to temporarily distort local pricing.
Macroeconomic shocks were shown to increase volume while reducing depth and widening spreads.
The report concluded that crypto liquidity in South Korea is cyclical and shaped by structure, incentives and investor behaviour.
At the time of reporting, Bitcoin price was $92,263.93.