Money is pouring into the financial sector… So why is Upbit faltering?

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Dunamu, the operator of Upbit, has faced a dual burden this year: decelerated performance and a decrease in investor funds. Although it maintains the top market share in the domestic virtual asset market, concerns about growth slowdown are increasing both inside and outside the market as the trading slump prolongs.

Recently, Hanwha Investment & Securities announced that it would acquire an additional approximately 1.36 million shares, equivalent to a 3.90% stake in Dunamu. Once the acquisition is complete, Hanwha Investment & Securities' stake in Dunamu will expand from the existing 5% range to the 9% range. Earlier, Hana Bank also secured a stake in Dunamu, indicating a continued trend of increasing investment in Dunamu by traditional financial institutions.

On the other hand, the actual market sentiment is changing from before. According to the Financial Supervisory Service's electronic disclosure system, the total user deposits at Upbit and Bithumb as of the end of the first quarter of this year amounted to 6.9478 trillion won. This is a decrease of approximately 870 billion won compared to the previous quarter. Upbit's deposits also continued their downward trend, decreasing to around 5 trillion won.

User deposits are interpreted as standby funds that investors entrust to exchanges for trading. The industry believes that the recent strength in the domestic stock market combined with the slowdown in virtual asset market trading has led some investment funds to shift to the stock market.

Performance has also significantly slowed down. Dunamu's net profit in the first quarter of this year was 69.5 billion won, a significant decrease compared to the same period last year, and both sales and operating profit also declined. The company explained that the global economic slowdown and the decrease in digital asset trading volume were the main reasons.

The market is paying attention to the possibility that Upbit will accelerate its expansion into new business areas beyond simple transaction brokerage, such as institutional services, custody, and digital financial infrastructure. However, for the time being, the recovery of trading volume and the improvement of investor sentiment are expected to be key variables for a performance rebound.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*