Upbit Won Deposits Drop 36% To $1.5B As Customer Idle Funds Leave Exchange

South Korean cryptocurrency exchange Upbit has seen its won-denominated customer deposits fall sharply this year, dropping to 2.0974 trillion won (approximately $1.5 billion) as of the latest reporting period. That marks a decline of about 36% from the end of last year, according to a report from DealSite.

Deposits Shrink from 8 Trillion Won Peak

Upbit’s won deposits, which at one point exceeded 8 trillion won during the height of the crypto bull market, have now fallen to the 3 trillion won range before settling at the current level. The outflow of idle funds suggests that retail investors are pulling back from keeping cash on the exchange, likely reflecting a broader shift in market sentiment or a move to other investment vehicles.

Alongside the decline in won deposits, Upbit’s fee revenue from trading activity has also fallen by nearly half over the same period. This indicates reduced trading volumes, as fewer customers are actively trading on the platform.

Bitcoin and Ethereum Holdings Rise

Interestingly, while won deposits have decreased, the exchange’s holdings of Bitcoin and Ethereum have increased. This suggests that customers are converting their fiat holdings into major digital assets, accumulating them in Upbit wallets rather than withdrawing to external wallets or selling off. This divergence points to a strategic shift among Upbit’s user base, who may be viewing the current market conditions as an opportunity to accumulate rather than trade actively.