XRP has emerged as the default trading chip in South Korea, overtaking both Bitcoin and Ethereum to dominate the country’s high-velocity retail crypto market. Data from major domestic exchanges shows that when trading activity accelerates, local investors consistently favor XRP for its liquidity and execution speed.
Dunamu, the operator of Upbit, reported that XRP was the most-traded asset on the platform over the year, ranking ahead of the two largest cryptocurrencies by market capitalization. A similar pattern is seen on Bithumb, South Korea’s second-largest exchange, where the XRP/KRW pair ranks second in volume share, trailing only USDT.
This behavior reflects a broader national trend in which altcoins account for roughly 70% to 80% of trading volume on domestic centralized exchanges, far above the global average of around 50%.
The preference for XRP is rooted in utility rather than long-term conviction. South Korea’s market is optimized for short-term decision-making, where the most effective asset is one that facilitates rapid speculation rather than serving purely as a store of value. Built primarily around KRW spot trading, local exchanges encourage traders to rotate into highly liquid assets during periods of heightened activity.
XRP’s deep order books, tight spreads, and low execution friction have made it the most “ergonomic” choice for retail traders, particularly during peak trading hours such as 9 a.m., when liquidity surges as the workday begins. In this context, XRP functions less like an investment and more like high-speed infrastructure for capital flow.
Structural constraints have further reinforced this role. With domestic exchanges largely limited to spot trading, traders seeking leverage often move capital offshore. Those remaining on local platforms compensate by trading higher-volatility assets, effectively using volatility as a substitute for leverage. XRP occupies an optimal position, offering sufficient price movement for short-term gains while maintaining the liquidity needed for rapid exits.
Community dynamics also play a critical role. South Korea’s XRP community is widely regarded as one of the most engaged globally, supported by high crypto adoption rates, with over 7 million registered exchange users nationwide. This social momentum has repeatedly translated into strong local buying pressure, at times surpassing that of major global exchanges.
As regulatory uncertainty around XRP has eased following the conclusion of Ripple’s legal battle with the U.S. SEC, institutional infrastructure is beginning to follow retail demand. Custody providers and financial firms are increasingly supporting XRP, signaling a shift in perception from a speculative instrument to an asset undergoing institutionalization within South Korea’s crypto market.
