Who Trades XRP? Korea and Japan Dominate, Not ETFs or Headlines

Honestly, all the news about ETFs and the Ripple lawsuit fades into the background for me when I really look at where XRP is being traded. The real price action happens with orders coming in from Korean Won and Japanese Yen – that’s where the actual buying and selling is concentrated.

Summary

On May 13, 2026, XRP became more actively traded than both Bitcoin and Ethereum combined on cryptocurrency exchanges in South Korea. Specifically, on Upbit, the country’s largest exchange, XRP saw $110.9 million in trades over 24 hours, surpassing Bitcoin’s $88.6 million and Ethereum’s $67 million. This made XRP the most traded cryptocurrency on the platform. A similar trend was observed on Bithumb, the second largest exchange, where XRP was second only to Tether. Despite the high trading volume, XRP’s price remained relatively stable, fluctuating between $1.44 and $1.46, and it continued to struggle to break through a price resistance level it hadn’t overcome since February.

That day wasn’t a fluke; it revealed how the XRP market really works. Despite all the focus on US ETF activity, the SEC lawsuit, and Ripple’s business moves, XRP’s price is largely determined by trading activity in Korea and Japan. Knowing *who* is trading XRP, and their motivations, is far more insightful than any news about new partnerships.

This analysis dives into the unusual behavior of XRP – its dramatic price drops, sudden surges, and seemingly illogical reactions to news. We’ll explore the key players – particularly trading networks in Korea and Japan – and how they influence the global price. We’ll also examine what it would take to alter this dynamic. This isn’t just about where XRP is traded; it’s about understanding the motivations of the traders who ultimately shape the price movements that most people only notice after they’ve already happened.

Korea by the numbers

The most important thing to understand is just how much XRP trading happened. On the Upbit exchange, XRP was the most traded cryptocurrency for the entire year, consistently outperforming Bitcoin and Ethereum in trading volume. In a particularly active period during July 2025, Upbit processed $269 million worth of XRP in just one day – more than any other exchange globally at that time, with $161 million occurring within a single hour. Furthermore, in March 2025, when global XRP trading doubled to $1.84 billion for the day, Upbit accounted for $452 million of that volume, making it the leading exchange worldwide.

As an analyst, I’ve been observing the Korean crypto market closely, and it’s clear they don’t just prefer XRP – they favor anything with trading activity. Unlike the global average of around 50%, altcoins account for a significant 70-80% of the trading volume on Korean exchanges. What’s really striking is the rapid rotation of capital; money quickly moves from one mid-cap coin to another, all driven by trending topics in their very active trading communities. While this happens with many coins, XRP consistently stands out. It’s the one asset Korean retail investors always seem to return to, acting as a familiar default option that still offers enough volatility to keep things interesting.

The data from May highlighted another factor driving XRP’s price: the Korean stock market. XRP’s popularity increased as the KOSPI index fell, with reports indicating that retail investors were selling underperforming stocks and moving into XRP – a well-known, high-risk cryptocurrency. When the Korean stock market does poorly, XRP typically sees a corresponding increase in trading volume within a few days. This shift happens independently of any news or announcements from Ripple.

The spot-only rule that explains everything

It might seem strange that XRP, a digital payment token created by a San Francisco-based company, is so popular for trading among individual investors in South Korea. The main reason, and something many analysts overlook, lies in South Korean financial regulations. The country doesn’t allow its citizens to trade cryptocurrency derivatives like futures or options on local exchanges.

Korean traders are limited by law in their access to offshore derivative platforms. This means if they want to trade with higher risk, they largely rely on the natural price swings of certain assets. Instead of using leverage directly, they pick assets that are much more volatile than Bitcoin. XRP, because it’s widely known, easily traded, and tends to move significantly with Bitcoin, is the closest option available to them for achieving a similar effect to a leveraged Bitcoin trade. Understanding this explains why the trading patterns for XRP look unusual – the preference for XRP isn’t about believing in its use for international payments or taking a side in the Ripple lawsuit.

This activity resembles a temporary fix – like quickly trading a winning lottery ticket in a market where you can only make immediate purchases. This explains why altcoins dominate with 70-80% of the market, why assets are frequently rotated, and why people hold them for short periods. The focus isn’t on long-term investment; it’s about making quick decisions based on current momentum, not fundamental analysis like reviewing a company’s reports. In fact, most of this money could easily shift to another cryptocurrency tomorrow if one shows stronger gains.

XRP consistently sees strong demand globally, creating a large and dedicated user base focused on trading. While South Korea will always be an active XRP market, their buying activity fluctuates. This means that high trading volume from Korea can sometimes increase XRP’s availability (bullish for liquidity) while simultaneously putting downward pressure on its price (bearish for price).

The kimchi premium and the plumbing

South Korean cryptocurrency markets have a unique characteristic that significantly impacts XRP prices. Prices for XRP traded with the Korean won often differ from global prices, spiking higher during periods of high buying and occasionally dropping lower when selling increases. This happens because it’s difficult for money to flow freely between Korean exchanges and the rest of the world due to financial regulations and banking restrictions, making it hard to quickly balance prices. When demand in Korea is high, prices on the Upbit exchange can be several percentage points above those on Binance for extended periods. This effect is especially pronounced with XRP, as a large portion of its trading volume occurs in Korea, creating a sort of amplifying cycle.

The price of cryptocurrencies in Korea often leads global trends. When demand increases in Korea, it pushes prices up, attracting traders worldwide who anticipate further gains and try to profit from the price difference. This increased global buying then drives prices even higher, creating a self-reinforcing cycle. The opposite also happens: if Korean investors start selling, prices fall, triggering a wave of selling internationally. This pattern has been particularly noticeable with altcoins, especially XRP, during two major market surges in the last ten years. The difference in price between Korean exchanges and the rest of the world – known as the ‘kimchi premium’ – isn’t just a quirk of the XRP market; it’s a key factor in how price movements spread globally.

Netflow data reveals something volume numbers alone don’t: where the XRP is actually going. During a peak in July 2025, Upbit had the highest XRP trading volume globally, yet over $100 million worth of XRP left the exchange that same day. Trading volume shows how much activity there is, while netflow shows the *direction* of the tokens. This disconnect between volume and netflow is common in Korean XRP markets, which are driven by quick trades and rotations, meaning high volume doesn’t necessarily indicate long-term adoption – headlines celebrating Korean volume as proof of widespread adoption are therefore misleading.

How XRP became Korea’s coin in the first place

The strong connection between Korean retail investors and XRP goes back to the early days of cryptocurrency. Back in 2017, when crypto was booming, South Korea became a major hub, and XRP was particularly popular there. A large percentage of all XRP trading that winter happened in Korean won, leading to a significant price difference (the “kimchi premium”). XRP actually reached its all-time high in January 2018 largely due to demand from Korea. Korean won trading pairs were at the forefront of the price surge, and later, the decline when South Korean regulators considered closing crypto exchanges.

A generation of Korean traders experienced significant gains and losses with XRP, and that initial experience has left a lasting impact on the market. XRP became central to a major economic rise and fall in Korea, and it remains a deeply ingrained part of the country’s trading habits. Unlike exchanges in the West which removed or limited access to XRP during the SEC lawsuit, Korean exchanges continued to fully support it, keeping it prominently displayed on platforms like Upbit throughout the legal battle.

While American investors started returning to XRP in 2024 and 2025, Korean retail investors had been consistently trading it all along. This explains why trading activity in Korea is so strong and well-established – it’s the result of ten years of uninterrupted trading. The Korean XRP market isn’t a new trend; it’s a more mature system than many of its counterparts in Western countries.

The concentration nobody prices: Upbit itself

Another key factor influencing the situation is how much of XRP’s trading happens on just one platform: Upbit in Korea. Upbit controls the vast majority of cryptocurrency trading within Korea and has a special banking partnership that allows it to easily convert won (Korean currency) into crypto. Korean authorities have been closely watching this concentration of power, looking at whether Upbit holds too much market share and reviewing its relationship with the bank. While changes in Korean regulations usually only affect the region, this situation is different due to Upbit’s importance.

XRP relies heavily on trading volume from Upbit, specifically its Korean won market. Any disruption to Upbit – whether a temporary halt in trading, a change in banking relationships, or regulatory action in South Korea – would have a greater impact on XRP’s daily trading activity than anything the SEC could do. However, there’s also potential for positive developments. South Korea is increasingly open to expanding crypto access, including discussions about institutional investment and ETFs, and Upbit’s owner is preparing for this growth. Therefore, traders should be aware of both the risks and opportunities.

It’s not about Seoul directly threatening XRP. The real issue is that a token so reliant on a single exchange, located in one country, faces a unique risk that standard Western financial models don’t account for – and it’s easy to recognize. Upbit isn’t just another exchange trading XRP; it’s a key driver of the token’s price and a central point in its market.

Japan: the other pillar, built differently

Once you move beyond Korea and into Japan, the XRP market looks very different. Japan has a long-standing and dedicated base of individual XRP investors, but their trading patterns are quite unlike those in Korea. This contrast highlights how government rules impact market activity. Japan’s cryptocurrency exchanges operate under strict regulations from the Financial Services Agency, including rules about protecting customer funds, secure storage, and lengthy review processes for new cryptocurrencies. Within this carefully controlled environment, XRP has gained support from institutional investors – a relatively uncommon achievement.

For almost ten years, SBI Holdings – a leading Japanese financial group – has been Ripple’s strongest supporter. They’ve worked together on Asian payment solutions, held XRP as an asset, and consistently promoted the token through statements by their CEO, Yoshitaka Kitao. SBI Remit even uses XRP for real-time money transfers, particularly between Japan and Southeast Asia, fulfilling its intended purpose as a bridge currency. This support has made XRP well-known and accepted among Japanese investors, who see it as a trustworthy alternative cryptocurrency backed by a major financial institution.

Japan’s policies unintentionally encourage people to simply hold onto their cryptocurrency rather than trade it. Unlike Korea, where crypto gains are taxed at a flat rate and trading is encouraged, Japan taxes crypto profits as regular income, with rates potentially reaching over 50% for high earners. This discourages active trading. Furthermore, SBI, a major financial firm, has even offered XRP tokens directly to shareholders as a benefit – a unique practice in the crypto world. These tax rules, combined with SBI’s incentives, mean that XRP purchased in Japan tends to stay put.

Japan and Korea have very different approaches to holding XRP. While Korea drives a lot of the quick buying and selling, creating price fluctuations, Japan tends to buy and hold for the long term, providing stability. Both countries have a large number of individual investors, and their contrasting behaviors – one boosting price swings, the other calmly absorbing the available XRP – significantly impact the token’s overall movement.

What this microstructure does to the chart

Understanding how XRP is traded helps explain its often dramatic price drops. XRP tends to fall more sharply than other similar cryptocurrencies during market downturns, and this happened again this spring when it lost about 17% in a week, breaking through key support levels. This is because most XRP trading is driven by short-term price increases, meaning there aren’t many investors holding onto the cryptocurrency long-term to prevent further declines when the price starts to fall.

When XRP’s price rises, strong buying from Korea quickly disappears as soon as that upward movement slows down, removing a significant amount of purchasing power. In contrast, Japanese buyers remain consistently lower and wait for better prices. This creates a temporary gap in support, causing XRP to often fall through it. Interestingly, positive news announcements widely celebrated by Western investors don’t seem to affect the price, while smaller events specific to Korea – like stock market dips, local rumors, or exchange promotions – frequently trigger large trading volumes.

Regular investors aren’t influenced by official announcements from Ripple, so those announcements don’t significantly impact price movements. Instead, XRP’s price is driven by factors like overall market trends, shifts in investment strategies, local trading activity, and signals indicating high demand. This same principle applies to sudden price increases – when XRP starts to rise consistently, the forces that previously caused drops will instead accelerate the rally. Specifically, investors in Korea tend to quickly reinvest profits into familiar cryptocurrencies like XRP, and this behavior can then spread globally, further boosting the price.

This particular price pattern – sudden, dramatic increases after long periods of little change – has historically characterized this token. The way leverage works with immediate-delivery purchases amplifies both gains *and* losses. This means XRP can appear stagnant for months, then surge rapidly when enough buyers enter the market.

Reading the signals correctly

For those trading or reporting on XRP, a more effective approach means focusing on a different set of data. Traditional tools – like tracking ETF flows, large wallet activity, or legal dates – don’t reveal the true drivers of the market. A Korea-focused approach looks different: pay attention to the percentage of XRP traded on Upbit in Korean Won, not just the overall global volume. An increase in Korean trading during a price increase suggests money is simply moving in and out, while a price increase with stable Korean trading indicates stronger, longer-lasting demand. Also, look at net buying/selling pressure compared to trading volume – sudden volume increases combined with net selling can indicate that apparent enthusiasm is actually distribution.

Keep a close eye on XRP price movements compared to global markets – it’s a good indicator of what Korean retail investors are doing. Historically, drops in this pairing have often predicted downturns in XRP more accurately than standard technical analysis tools. Also, surprisingly, pay attention to the KOSPI (Korean stock market). The biggest surge in XRP trading volume this spring wasn’t caused by news about Ripple itself, but by a sell-off in Korean stocks. These observations also help us understand the limitations of looking at Korean trading volume alone – it doesn’t prove that large institutions are investing in XRP, as their activity happens through separate channels.

We can’t confirm the idea that payments will drive price increases, as current activity is based on speculation. Predicting a long-term price is also impossible because the money currently moving into XRP only focuses on short-term gains. Therefore, when looking at XRP’s potential, it’s crucial to distinguish between short-term trading patterns and the underlying value of the technology. While trading data can explain immediate price swings, it doesn’t tell us what XRP is ultimately worth. The current market activity in Korea significantly boosts short-term price movements but is unreliable for predicting long-term value.

A worked example: reading one week of tape

Real-world events confirm what theories suggest, so let’s look at the price drop in early June as a case study comparing our Korea-focused dashboard to a standard one. A typical analysis that week would have simply said XRP dropped about 17%, large holders were selling, and the price fell below its support level – not very helpful. However, looking at the detailed market structure revealed more. Korean trading volume of XRP had been increasing for weeks, even though the global price wasn’t moving much, which is a telltale sign that Korean traders were solely driving the price up.

Even when the market was generally up, trading patterns showed sellers outweighing buyers on major exchanges – essentially, the biggest traders were selling into their own positive momentum. When a larger sell-off began, this fragile support quickly disappeared, as expected. The price dropped until it hit stronger buying interest from Korean and Japanese investors. This entire movement happened without any need for large, coordinated sales or specific news events to explain it.

Experienced traders following the order books had already hinted at this pattern. Essentially, this asset behaves like this: if trading volume in Korea increases while net buying decreases, consider the price increase temporary. However, if the Korean share price drops but the asset’s price remains stable, it suggests strong, sustained buying – a much more reliable signal. This isn’t a perfect system for predicting market peaks and valleys, but it reveals the motivations of the other traders involved, which is often the most valuable insight microstructure analysis can provide.

What would change the structure

Current market conditions and upcoming regulations could significantly change the landscape for XRP in the next couple of years. South Korea, in particular, is moving towards allowing more involvement from financial institutions in the crypto market. They are considering allowing corporations to trade crypto, creating frameworks for spot ETFs, and eventually offering access to derivatives. As Korea opens up, the current situation where XRP is disproportionately used as a financial tool will likely lessen.

In South Korea, increased access to Bitcoin futures reduces the need for traders to use XRP for risky investments. Furthermore, if Korean institutions start directly buying and selling cryptocurrencies, it would bring a more stable and considered flow of money into the market, which is currently missing. This shift would likely decrease XRP’s trading volume in Korea, but improve the quality of those trades – a positive for long-term XRP holders, but potentially disappointing for short-term traders. In the U.S., the future of XRP depends on legislation like the CLARITY Act and the growing popularity of Bitcoin ETFs. If U.S. laws clearly define XRP’s legal status, the institutional investment currently limited by ETFs could expand, potentially matching the trading volume from the large retail base in Asia.

As a crypto investor, I’m watching XRP closely, and I think its price could really change. Right now, it mostly moves based on buying and selling from Korea and Japan. But I’m hoping to see more consistent investment from the US, and institutions in general. While Asian retail investors are a huge force, larger investments from the West could become a major driver of price, alongside Korea and Japan. It wouldn’t eliminate the influence of Asian markets, but it would balance things out and potentially reduce their overall control over the price.

Japan is developing clearer rules for ETFs, and XRP is being considered as a potential option due to the strong relationship between SBI and Ripple. Unlike South Korea, where ETF markets often see quick shifts, Japan’s investors tend to be more cautious and focused on regulatory compliance. If an XRP ETF were approved in Japan, it would solidify the country’s position as a stable, long-term investor in the cryptocurrency, which could help XRP build a stronger and more consistent trading history – something it has often needed.

While basic factors still play a role, they need to drive lasting demand, not just temporary trading spikes. For XRP, a system where validator voting creates locked supply, generates returns, and encourages real-world use would be valuable – much more than just another announcement. This utility wouldn’t instantly replace the existing trading patterns between Korea and Japan, but it would attract buyers interested in long-term value beyond speculation.

The current market situation doesn’t promise anything about what’s to come, but it’s the clearest way we see XRP reaching a point where its price is driven by its actual utility and purpose. For now, order book data remains our best guide. The first indication that things are changing won’t be news announcements – instead, look for shifts in trading volume, the direction of money flow, how premiums behave, and whether or not ETFs continue to hold steady.

The book does not lie

The price movement of any asset reflects who actually owns it, and XRP’s price chart has consistently shown this for years if you look beyond simple news reports and examine how orders are being placed. The price is primarily driven by individual investors in Korea who thrive on its ups and downs, supported by a long-standing base of Japanese buyers who initially invested based on institutional recommendations. More recently, Western institutions have begun to show some interest, but their involvement remains limited. This pattern – rapid gains followed by sudden drops, ignoring news events and responding only to price trends – isn’t due to trickery or artificial influence; it’s simply a direct result of who is buying and selling XRP.

The key to XRP’s future isn’t what Ripple might announce next – it’s who will be buying it. If the same traders from Upbit continue to drive price movements, the pattern we’ve seen before will likely repeat itself. However, if new investors enter the market due to positive regulatory developments in places like Seoul and Washington D.C., then XRP’s price chart could begin to show a different trend.

You’ll likely see changes reflected in market data – like order books and transaction volumes – before you read about them in news articles, which has historically been the case with this particular token. Currently, while most information about XRP originates in English, its price is heavily influenced by trading activity using Korean Won and Japanese Yen. The true story isn’t found in headlines, but within the actual market data itself; it’s a matter of looking at the right sources.

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2026-06-12 17:13