In Summary
Upbit surpasses Binance to become the largest holder of XRP, reflecting growing interest from South Korean retail investors in Ripple’s digital asset.
South Korean traders drive XRP trading volume, accounting for 14.37% of global activity, fueled by speculation about Trump’s cryptocurrency reserves. The ongoing SEC lawsuit creates uncertainty for XRP, but there is still hope for regulatory clarity and potential ETF approval.
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Upbit, South Korea’s leading cryptocurrency exchange, has become the exchange holding the largest XRP reserves among all exchanges tracked by CryptoQuant.
This finding comes just days after President Donald Trump announced a US cryptocurrency reserve fund holding XRP, along with other tokens.
Upbit Dominates XRP Trading Volume
According to data from CryptoQuant, Upbit holds “double” the amount of XRP compared to Binance, the second-largest platform in terms of XRP reserves. Market analyst Kate Young Ju shared this finding, which reflects the growing prominence of XRP trading in South Korea.
Not only does Upbit hold the largest XRP reserves, but it also leads in XRP trading volume. Data from CoinMarketCap reveals that Upbit accounts for 14.37% of the total XRP trading volume. The exchange has surpassed Binance, which holds a 12% market share.
This shift underscores the growing interest of South Korean investors in XRP. However, some suggest that the elevated trading volume is due to traders taking advantage of the Kimchi Premium.
Upbit’s dominance in XRP—is the Kimchi Premium driving demand?” one user quipped
The Kimchi Premium refers to the phenomenon where cryptocurrency prices in the South Korean market trade at a significantly higher level than on global exchanges. This arises from capital controls and domestic market inefficiencies, leading to inflated local prices.
When these elevated prices are factored into global averages without adjustment, they can artificially inflate the perceived value.
However, data from Google Trends confirms this outlook. It shows that search interest for ‘XRP’ in South Korea has reached its highest level in the past five years.
“This increased interest aligns with a broader trend of South Korean investors becoming more active in the cryptocurrency space. According to a BeInCrypto report, over 30% of the South Korean population is investing in cryptocurrencies. This is evident in XRP, with a strong trading presence in the region.
One possible driver for the recent surge in interest could be the inclusion of XRP in President Trump’s proposed cryptocurrency reserve fund.
According to BeInCrypto reports, XRP was listed alongside other major assets like Solana (SOL) and Cardano (ADA). This led to increased speculation and price activity surrounding the token. Following this news, XRP’s price saw a significant increase, further fueling investor excitement.
However, the price has since dropped due to a ‘sell-the-news’ situation and FUD (fear, uncertainty, and doubt). This occurred after concerns arose when crypto leaders questioned Trump’s reserve plan. Nevertheless, analysts remain optimistic as the XRP token price becomes undervalued.
Regulatory Uncertainty: The SEC Lawsuit Looms
Despite the growing excitement and trading volume, XRP remains entangled in a legal battle with the SEC (U.S. Securities and Exchange Commission). After the securities regulator recently dropped its case against MetaMask, there is much speculation about whether Ripple’s case might be next.
However, regulatory uncertainty continues to cloud the token’s long-term outlook, including the possibility of an XRP ETF (exchange-traded fund).
Many XRP investors and legal analysts believe the SEC may be stalling in its decision-making process, further prolonging the token’s uncertainty. Meanwhile, some are hopeful that the SEC might drop the case against Ripple in April.
If this were to happen, it would be a significant regulatory victory for XRP. Such an outcome could also pave the way for wider adoption and institutional investment.
Data from BeInCrypto shows that XRP is trading at $2.43 at the time of writing, up over 4% since the Wednesday trading session opened.
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