The South Korean cryptocurrency market is growing in importance. In Quarter 1 2024, the Korean won was the most actively traded currency for crypto assets in the world, surpassing the U.S. dollar. According to data from research firm Kaiko, in Quarter 1 2024, the Korean won's cumulative trading volume on centralized cryptocurrency exchanges was $456 billion, while the U.S. dollar trading volume was $445 billion. The growth of won-denominated trading is in part the result of the ongoing fee war among South Korean exchanges. Smaller exchanges such as Bithumb and Korbit have recently launched zero-fee trading promotions in an attempt to attract traders from Upbit, which dominates the local market with a market share of more than 80% of spot trading volume. In South Korea, users prefer smaller and more volatile counterfeit products to more mainstream cryptocurrencies such as Bitcoin and Ethereum. On average, transactions involving smaller-cap tokens account for more than 80% of all activity in the country.