South Korean retail traders are shifting the balance of power in the crypto market. In a dramatic turn driven by macroeconomic sentiment, XRP and Dogecoin have overtaken Bitcoin and Ethereum in trading volume on major Korean exchanges, signaling a bold risk-on attitude amid easing global tensions.
As of May 12, 2025, trading data from platforms like Upbit and Bithumb show XRP and DOGE commanding a dominant share of volume. Analysts attribute this surge to softening U.S.-China trade relations, a weakening dollar, and the growing appetite among Korean retail investors for high-volatility altcoins.
Altcoins Outshine Bitcoin as Speculative Frenzy Heats Up
While Bitcoin continues to hold its psychological support above $61,000, Korean traders are chasing higher returns from mid-cap altcoins. XRP and Dogecoin, often considered speculative assets, have seen a remarkable increase in weekly trading volume, outperforming their larger peers.
“South Korean exchanges are lighting up with DOGE and XRP,” noted Seoul-based analyst Min-kyu Hwan. “It’s a clear sign that local traders are feeling optimistic and ready to bet on volatility.”
The appetite for risk is partly driven by expectations that the Federal Reserve may pivot toward rate cuts by Q3, as U.S. inflation continues to cool. This dovish expectation, combined with favorable geopolitical news, has triggered a breakout across altcoin markets.
Price Overview
| Asset | Price (USD) | 24h Change | 7d Change | Trading Volume (24h, Upbit) |
|---|---|---|---|---|
| XRP | $0.79 | +6.5% | +15.2% | $842 million |
| Dogecoin | $0.173 | +5.8% | +14.4% | $790 million |
| Bitcoin | $61,420 | +2.1% | +10.1% | $543 million |
| Ethereum | $3,265 | +3.9% | +39.7% | $412 million |
Ethereum’s price action remains strong, driven by global demand, but it is XRP and DOGE that dominate Korean trading desks in sheer volume and frequency.
U.S.–China Trade Truce Sparks Market Optimism
The latest risk appetite in Korean markets isn’t a fluke—it’s fueled by macroeconomic developments. Over the weekend, U.S. and Chinese trade representatives concluded negotiations in Geneva, agreeing to lower bilateral tariffs over the next 90 days. The deal reduces U.S. tariffs on Chinese goods from 145% to 30%, while China will slash duties on American imports from 125% to 10%.
These moves are seen as a potential catalyst for global economic expansion, lifting emerging market assets, including riskier cryptocurrencies.
“When geopolitical tensions ease, we typically see an appetite for growth and speculative plays,” said economist Claire Woo of Yonsei University. “DOGE and XRP benefit most from this behavior in Korea.”
South Korea Investors Remain Hyper-Reactive to Market Signals
The Korean retail crypto ecosystem is among the most vibrant in the world. From past experiences with altcoin frenzies, such as the 2021 “Kimchi Premium” era, traders in South Korea have shown a consistent pattern of chasing momentum with high conviction and speed.
What’s different now is the macro backdrop: inflation is stabilizing, tech stocks are rising, and crypto sentiment is improving. According to CoinGecko, over 28% of global DOGE trading volume in the past 24 hours originated from South Korea.
Additionally, XRP remains culturally embedded among Korean crypto traders, who see it as a utility token tied to remittance, cross-border payments, and long-term settlement technology.
The Role of Short Squeeze and Leverage in the Altcoin Surge
Another factor contributing to the surge is the recent $1 billion short squeeze that wiped out leveraged bearish positions in mid-cap altcoins. This mass liquidation triggered automatic buying pressure across platforms and pushed DOGE, XRP, and others to fresh multi-month highs.
Many Korean retail traders, known for using high-leverage trading, were forced to reposition themselves late last week when the market turned bullish.
“Korea’s crypto crowd thrives on quick reversals,” explained crypto strategist Leo Ji. “A short squeeze like this creates a chain reaction—and we’re now seeing its aftershock in DOGE and XRP.”
Global Momentum Builds, but Risks Remain
Despite the bullish outlook, caution is warranted. DOGE and XRP remain volatile assets that heavily rely on social sentiment and whale movements. Furthermore, while trade peace talks have boosted optimism, execution risks remain if either side backtracks on tariff agreements.
Still, the alignment of macro optimism, short-term technical breakouts, and Korea’s retail power has created a uniquely favorable environment for altcoins in May.
Technical Analysis: XRP and DOGE Break Key Resistance
From a technical perspective, XRP has decisively broken resistance at $0.72, now eyeing $0.85 as the next target. If momentum persists, bulls may even push toward $1.00 in the coming weeks.
Dogecoin has reclaimed its multi-month trendline around $0.16 and is currently targeting $0.19. If it clears that level, the next stop could be $0.21—last seen in early 2024.
Conclusion: Korean Traders Drive Altcoin Resurgence
XRP and Dogecoin’s dominance on Korean exchanges this week highlights a powerful mix of retail conviction, favorable macro sentiment, and high-beta speculation. As South Korea leads the charge in altcoin trading, global investors are watching closely, with DOGE and XRP once again becoming market barometers.
If the current rally continues and the broader macro landscape supports risk-taking, South Korea could become the epicenter of the next altcoin cycle—one trade at a time.
FAQs
Why are XRP and Dogecoin trading higher in South Korea?
Retail investors in South Korea favor XRP and DOGE due to easing trade tensions, short squeezes, and a return to speculative risk-on behavior.
Is this altcoin rally sustainable?
While macro conditions are supportive, DOGE and XRP are volatile. Continued upside depends on follow-through buying and global market sentiment.
What caused the sudden volume surge?
A $1 billion short squeeze and easing U.S.–China trade concerns triggered rapid buying interest on Korean exchanges, especially in high-beta coins.
Is Bitcoin losing dominance in Korea?
Temporarily. While BTC remains the top asset globally, Korean traders are rotating to faster-moving assets like DOGE and XRP during bullish cycles.
Glossary of Key Terms
Altcoin – Any cryptocurrency that is not Bitcoin, such as Ethereum, XRP, and Dogecoin.
Risk-On Sentiment – A market environment where investors are willing to take more risks, often favoring volatile assets like crypto.
Short Squeeze – A rapid price increase that forces traders betting against a cryptocurrency to buy back their positions, causing further upward momentum.
XRP – The native cryptocurrency of the Ripple network, used primarily for cross-border payments and remittances.
Dogecoin (DOGE) – A meme-inspired cryptocurrency originally started as a joke, now widely traded for speculative and community-based investment.
Trading Volume – The total value of a cryptocurrency traded over a given time period, indicating market interest and activity.
Tariff Reduction – A cut in taxes or duties imposed on imported goods, often used in trade negotiations to improve economic relations.
Retail Investors – Individual, non-professional traders who invest their own capital, as opposed to institutions like banks or hedge funds.
Upbit/Bithumb – Two of South Korea’s largest cryptocurrency exchanges where retail investors actively trade altcoins.
