Upbit, South Korea’s leading cryptocurrency exchange, has skyrocketed to the top, now holding the largest XRP reserves among all tracked exchanges by CryptoQuant.
This comes just days after President Donald Trump revealed plans for a US crypto reserve featuring XRP and other tokens. Impressively, Upbit holds twice as much XRP as Binance, the second-largest platform, in terms of XRP reserves. This depicts how XRP trading is growing in popularity in South Korea.
Notably, analyst Kate Young Ju pointed this out in an X post.
Upbit is not only the largest holder of XRP reserves, but it also leads in XRP trading volume. Data from CoinMarketCap shows that Upbit accounts for 14.37% of the total XRP trading volume, outpacing Binance, which holds 12%. However, some believe that the increase in trading volume is driven by traders exploiting the Kimchi Premium, a price difference between South Korean crypto markets and others.
Is It Due To Kimchi Premium?
The Kimchi Premium is when crypto prices in South Korean markets are higher than in global markets. This happens due to capital controls and market inefficiencies in South Korea, causing inflated local prices. When these prices are included in global averages without adjustment, they can make the overall values seem higher than they really are.
However, Google Trends data supports this view, showing that search interest for “XRP” in South Korea has hit its highest point in the past five years. The growing interest in XRP reflects a larger trend of South Korean investors becoming more active in cryptocurrencies. Notably, over 30% of South Korea’s population is now investing in crypto, with XRP seeing a strong presence in the region.
XRP To Be Included In Crypto Reserve?
One key factor driving this surge could be the inclusion of XRP in President Trump’s proposed crypto reserve, alongside major assets like Solana (SOL) and Cardano (ADA). This sparked increased speculation in the market and a price surge for XRP, which caught investors’ interest.
After the initial price surge, XRP’s value dropped which was triggered by skepticism surrounding Trump’s crypto reserve plan. Despite this, analysts remain optimistic, believing that XRP is currently undervalued.
However, regulatory uncertainty still hangs over XRP’s long-term future, including the potential for an XRP ETF. Some believe that the SEC could drop the lawsuit by April, which could be a big win for XRP, opening the door to more adoption and investment.
