This report presents a robust framework for measuring liquidity, defined as the ability to quickly execute large orders at a price close to the market with limited impact. Liquidity must be tracked over time and across market regimes, incorporating the effects of seasonality and macroeconomic events while balancing pre-trade and post-trade perspectives. In practice, liquidity is measured by the speed of execution and the immediate availability in the order book. The analysis details indicators such as volume, spreads, market depth, and slippage, and applies this framework to Korean cryptocurrency exchange platforms such as UPbit and Bithumb.
In Korea, KRW markets on exchanges have historically adopted large tick sizes to stabilize price action and improve order book readability for a highly active retail audience. The primary objective is stability, based on the observation that larger tick sizes reduce noise, limit price movements, and improve order book readability for a very active retail clientele. UPbit has implemented a price-range-based tick size to adapt granularity to price levels while preserving stability. Despite these large tick sizes, UPbit remains the most liquid exchange, based on ask-side slippage in the BTC-KRW market in late 2025 for a 10,000,000 KRW ask order.
We compare the main Korean exchanges in terms of trading volume and market share and analyze token-specific dynamics. The vast majority of trade volume in Korea is concentrated on UPbit, with recurring spikes far exceeding Bithumb, particularly during periods of macroeconomic shock. Liquidity can also be analyzed when BTC reaches new all-time highs, as has been observed several times in 2025. Rising prices attract new capital, which tends to fill the order book and tighten spreads on the most liquid pairs.
Leave a Reply