In a surprising twist on global cryptocurrency trends, XRP has emerged as the undeniable leader in South Korea's vibrant retail trading scene, consistently outpacing Bitcoin and Ethereum in volume. While institutional investors worldwide often view Bitcoin as a primary store of value, the trading patterns among South Korean enthusiasts tell a markedly different story. Data from the nation's premier exchanges clearly indicates a strong preference for XRP, particularly during periods of heightened market activity, driven by its unparalleled liquidity and speed.
This unique domestic preference isn't merely a fleeting trend; it has become a structural characteristic of the local retail investment landscape. For 2025, Dunamu, the powerhouse behind the leading Upbit exchange, proudly listed XRP as its most-traded asset. This places XRP ahead of both Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization globally, signaling a significant divergence from international norms.
XRP's Unrivaled Market Presence
The pattern of XRP dominance isn't confined to a single platform. Bithumb, South Korea's second-largest exchange, mirrors Upbit's trend, where the XRP/KRW trading pair commands the second-highest volume share, only trailing the USDT stablecoin pair. This aligns with a broader national phenomenon: altcoins typically account for a staggering 70% to 80% of total trading volume on domestic centralized exchanges. This figure dwarfs the global average of roughly 50%, underscoring South Korea's distinct appetite for diverse digital assets.
The “Why” Behind the Preference: Utility Over Conviction
Understanding this pronounced favoritism for XRP requires looking beyond traditional investment theses of “buy and hold” strategies. South Korea's crypto market is primarily optimized for short-horizon decisions and agile trading. In such an environment, the most valuable asset isn't necessarily the one with the strongest long-term store-of-value proposition, but rather the one that functions most effectively as a tool for rapid speculation and execution.
The country's local infrastructure inherently rewards this specific utility. Major South Korean exchanges, including Upbit, are meticulously built around spot trading against the South Korean Won (KRW). When traders aim to capitalize on market movements, they rarely gravitate towards illiquid assets. Instead, they rotate into assets that maintain robust tradeability even during periods of intense volatility. XRP fits this description perfectly, offering:
- Deep order books: Allowing large trades without significant price impact.
- Tight spreads: Minimizing transaction costs for traders.
- Low friction for execution: Ensuring quick and seamless trade completion.
Consequently, XRP has become the “ergonomic” choice for a retail user base that has been conditioned to treat it as a fundamental rotation pair. This utility is particularly crucial during Upbit's busiest trading hour, identified as 9 AM. As the workday begins, a massive influx of liquidity floods the market, and traders require an asset capable of absorbing this morning rush without experiencing crippling freezes or slowdowns. XRP consistently serves as the default vehicle for this liquidity, functioning less like a long-term investment and more like a high-speed rail for capital.
Volatility as a Proxy for Leverage in a Spot-Only Market
Beyond its inherent trading characteristics, structural constraints within South Korea have also channeled speculative energy directly into XRP. According to crypto research firm Tiger Research, a significant portion of capital from South Korean investors flows into foreign exchanges, rather than remaining in domestic markets. This outflow is largely driven by a quest for derivative products, which are typically unavailable on local platforms.
“South Korean domestic exchanges primarily offer spot trading. That restriction creates a split market, with traders seeking leverage going offshore. This means that those remaining on domestic platforms must manufacture their own leverage by trading assets with high volatility (or “beta”).”
XRP occupies a unique “sweet spot” for this demographic. It exhibits sufficient volatility to generate substantial short-term returns, yet it maintains enough liquidity to allow traders to swiftly enter and exit positions. In essence, XRP effectively serves as a proxy for leverage in a spot-only market, enabling domestic traders to pursue aggressive strategies they would otherwise seek abroad.
Adding another layer to this behavior is the prevailing market psychology. Many South Korean traders, having missed the early, exponential growth phases of Bitcoin and Ethereum, are now actively seeking to replicate those life-changing returns. This pursuit of high-growth assets has historically led domestic traders to fuel euphoric rallies in the crypto market, with Korean investors frequently profiting from short-term trades in low-cap, high-volatility assets.
The “XRP Army” and Community Moat
Beyond pure market mechanics, XRP's dominance is powerfully reinforced by an exceptionally passionate community culture. Tatsuya Kohrogi, Ripple's Senior Manager of Ecosystem Growth, recently described the South Korean XRP community as “next level,” underscoring an intensity of engagement that surpasses other major regions. This fervent dedication is a natural outcome of the country's high cryptocurrency penetration rate.
Reports indicate that over 7 million South Koreans, roughly 15% of the total population, are now registered on local exchanges. This high density has fostered a distinct social momentum that consistently bolstered XRP’s price performance last year. Crypto analyst Dom has even noted several instances where Upbit’s buying power for XRP exceeded that of global giants like Coinbase and Binance. This pattern suggests that XRP traders in South Korea don't just trade the asset; they actively mobilize to defend and support it on their local platforms.
Building an Institutional Bridge
This intense retail engagement is now beginning to attract significant institutional infrastructure. While South Korea's preference for XRP initially developed as a speculative habit, evolving global narratives and local developments are solidifying it into a core structural feature of the market. For years, XRP faced the significant tail risk of a US regulatory crackdown, but that cloud has largely dissipated.
The US Securities and Exchange Commission (SEC) concluded its legal battle against Ripple in August 2025, a pivotal moment that has paved the way for increased institutional confidence. Following this resolution, major financial players, such as Franklin Templeton, have announced plans for XRP-focused Exchange Traded Funds (ETFs). This global shift towards legitimacy is now being mirrored by domestic infrastructure upgrades meticulously tailored to South Korea's unique market composition.
Recognizing the profound depth of the local XRP market, regulated entities are actively moving to support and integrate it into traditional finance. BDACS, one of South Korea's mere four licensed crypto custodians, is playing a crucial role in bridging the gap between blockchain technology and conventional financial institutions. The firm has entered into a collaboration with Ripple to deliver comprehensive digital asset custody services for tokenized securities, including stablecoins like Ripple USD (RLUSD), and notably, XRP itself. By building robust custody solutions for the very asset that dominates retail turnover, firms like BDACS are effectively validating the market's choice and elevating XRP's status. Thus, the narrative around XRP is progressively transforming from a mere speculative tool to an asset that is undergoing significant institutionalization.
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