South Korean crypto market experiences unusual trading volumes
The South Korean crypto market has been buzzing with unprecedented activity this week, as trading volumes in XRP and Dogecoin (DOGE) surpassed Bitcoin (BTC) on major local exchanges. This sudden shift has sparked curiosity among traders and analysts alike, with many speculating on the causes and implications of such a trend.
Rising popularity of XRP and DOGE
XRP and DOGE have seen a resurgence in popularity, fuelled by a combination of market dynamics and external influences. For XRP, the easing of regulatory pressure in the U.S. has provided a much-needed boost, as Ripple Labs, its parent company, continues to navigate legal challenges. On the other hand, DOGE’s growth has been tied to high-profile endorsements, particularly from Elon Musk, whose renewed interest in the token has rekindled investor enthusiasm.
Bitcoin, the perennial leader in trading volume, has taken a backseat as XRP and DOGE captured the spotlight. While BTC remains a staple in global portfolios, its trading volume on South Korean exchanges has been eclipsed by the excitement surrounding these altcoins.
Insights from South Korean exchanges
Reports reveal that XRP and DOGE accounted for 30 percent of trading volumes on Upbit and nearly 20 percent on Bithumb over the past 24 hours. Upbit alone reported the highest XRP volumes globally, even surpassing trading activity on international platforms like Binance and Coinbase.
This spike in activity could partially be attributed to speculative trading, with South Korean traders historically known for driving euphoric market rallies. Additionally, concerns about wash trading, where automated programs artificially inflate volumes, have been raised, suggesting that some of the reported activity may not reflect genuine market demand.
XRP is currently trading above $1, marking its strongest rally in three years. Analysts note that momentum indicators suggest a bullish trend, with key support levels at $0.96 and $0.65, and resistance levels at $1.26 and $1.40. Currently trading at just under $0.40, DOGE has more than doubled in value over the past two weeks. Its futures products have also hit yearly highs, signalling strong interest from both retail and institutional investors.
South Korea has long been a hotspot for crypto speculation, with past instances of the Kimchi premium highlighting the region’s influence on global prices. This localised surge in XRP and DOGE trading volumes mirrors these historical trends.
