Upbit Leads in XRP Trading as South Korean Interest Grows

Upbit, the foremost cryptocurrency exchange in South Korea, has distinguished itself by becoming the largest holder of XRP reserves among tracked exchanges, as highlighted by analytics platform CryptoQuant.

The announcement follows President Donald Trump's recent proposition of a US crypto reserve which includes XRP among other prominent tokens.

Upbit's Leadership in XRP Trading Volume

Data from CryptoQuant indicates that Upbit possesses “twice as much” XRP compared to Binance, which ranks second in XRP reserves. Market analyst Kate Young Ju has illustrated this finding, emphasizing the increasing relevance of XRP trading within South Korea.

Besides its XRP reserves, Upbit also takes the lead in XRP trading volume. According to CoinMarketCap, Upbit is responsible for 14.37% of the total XRP trading volume, surpassing Binance’s 12% share.

This trend highlights the escalating interest from South Korean investors in XRP. Some analysts suggest that the increased trading volume may be driven by the Kimchi Premium, a phenomenon where crypto prices in South Korea are significantly higher than in global markets, due to capital controls and market inefficiencies.

“Upbit’s XRP dominance—Kimchi Premium fueling demand?” one user noted.

When South Korean prices are included in global averages without any adjustments, they can artificially inflate perceived values.

However, Google Trends data shows that search interest for “XRP” in South Korea has peaked, reaching its highest point in the last five years.

This growing interest mirrors a larger trend of cryptocurrency participation, as recent studies show that over 30% of South Korea's population is now engaged in crypto investments. XRP is actively featured within this movement.

The potential rise in interest could be correlated to the inclusion of XRP in President Trump’s proposed crypto reserve. Alongside other significant assets like Solana (SOL) and Cardano (ADA), XRP's listing has sparked speculation and increased market activity. Following the announcement, XRP's price witnessed a noticeable spike, further igniting investor excitement.

Nevertheless, the price saw a slight retraction soon after due to a “sell-the-news” scenario intertwined with FUD (fear, uncertainty, and doubt) stemming from skepticism about Trump’s reserve plan. However, analysts remain optimistic regarding XRP's current price, suggesting it may be undervalued.

Regulatory Concerns: The SEC Lawsuit Continues

Despite the flourishing trading volume and investor enthusiasm, XRP remains caught in an ongoing legal dispute with the US SEC (Securities and Exchange Commission). Speculation is rising about whether Ripple's case might soon receive attention now that the SEC has dropped its lawsuit against MetaMask.

However, regulatory challenges still loom over XRP's long-term future, affecting opportunities for an XRP ETF (exchange-traded fund). Many XRP stakeholders and legal experts speculate that the SEC is delaying its decision, extending the uncertainty surrounding the token. Some are hopeful that the SEC may soon drop the lawsuit against Ripple, potentially by April.

If this occurs, it could constitute a considerable regulatory victory for XRP, promoting broader institutional adoption.

Currently, XRP trades at approximately $2.43, up over 4% from the opening of Wednesday’s session.