XRP Craze in South Korea Triggers Memories of LUNA Meltdown
The XRP craze in South Korea is taking the crypto world by storm, with traders flocking to Ripple’s blockchain asset on the Seoul-based Upbit exchange. Surpassing even Bitcoin and Ethereum in trading volume this week, XRP has seen over $6 billion in trades, comprising one-third of the overall $18 billion traded on the exchange.
This surge in XRP activity is not surprising to those who have been in the crypto game since 2017, when South Korea was known for its ‘kimchi premium’ on Bitcoin. This phenomenon created a premium on BTC trading in the country compared to other regions, attracting international arbitrageurs.
Recently, XRP traded at a slight premium in South Korean won (KRW) compared to the global average, indicating high demand and potential for a kimchi premium revival. Upbit even briefly overtook Coinbase in pricing for XRP, showcasing its volatility and rapid growth.
XRP’s market capitalization now rivals some of South Korea’s largest public companies, positioning it as the third-largest cryptocurrency worldwide. The surge in XRP’s value has led to media praise for the “Ajummas,” a group of savvy investors who have capitalized on the crypto boom.
While South Korea celebrates its crypto success, some cautious investors remember past failures like the Terra LUNA meltdown in 2022. This caution stems from skepticism about XRP’s long-term prospects and the potential for disappointment if it cannot sustain its gains.
Despite the excitement surrounding XRP, South Koreans are not quick to forget the lessons learned from past crypto failures, emphasizing the importance of cautious optimism in the volatile world of cryptocurrency trading.
