Upbit, South Korea’s leading cryptocurrency exchange, has emerged as the largest holder of XRP reserves among all exchanges tracked by CryptoQuant.
The findings come just days after President Donald Trump announced a US crypto reserve featuring XRP, among other tokens.
Upbit Dominates XRP Trading Volume
According to CryptoQuant data, Upbit holds “twice as much” XRP as Binance exchange, the second-largest platform in terms of XRP reserves. Market analyst Kate Young Ju shared this finding, which reflects the growing prominence of XRP trading in South Korea.
In addition to holding the most XRP reserves, Upbit also leads in XRP trading volume. CoinMarketCap data reveals that Upbit accounts for 14.37% of the total XRP trading volume. It has outpaced Binance, which holds a 12% market share.
This shift highlights the increasing interest of South Korean investors in XRP. Nevertheless, some say the heightened trading volume is due to traders leveraging the Kimchi Premium.
“Upbit’s XRP dominance—Kimchi Premium fueling demand?” one user quipped.
Kimchi Premium refers to a phenomenon where crypto prices in South Korean markets trade at a significant premium compared to global markets. It arises from capital controls and market inefficiencies within South Korea, leading to inflated local prices.
When these higher prices are factored into global averages without adjustment, they can artificially elevate the perceived values.
Nevertheless, Google Trends data corroborates the outlook. It shows that search interest for “XRP” in South Korea has reached its highest level in the past five years.
The heightened interest aligns with a broader trend of South Korean investors becoming more active in cryptocurrencies. As BeInCrypto reports, over 30% of South Korea’s population is investing in crypto. This is evident in XRP, which boasts a regional trading presentation.
One possible driver of the recent surge in interest could be the inclusion of XRP in President Trump’s proposed crypto reserve.
As BeInCrypto reported, XRP was listed alongside other major assets such as Solana (SOL) and Cardano (ADA). This led to increased speculation and price activity surrounding the token. Following the news, XRP experienced a notable price surge, further fueling investor enthusiasm.
However, the price retracted shortly after because of the “sell-the-news” situation and FUD (fear, uncertainty, and doubt). This followed concerns as crypto leaders questioned Trump’s reserve plan. Nevertheless, analysts remain hopeful as the XRP token price becomes undervalued.
Regulatory Uncertainty: The SEC Lawsuit Looms
Despite the growing enthusiasm and trading volume, XRP remains entangled in a legal battle with the US SEC (Securities and Exchange Commission). After the securities regulator recently dropped its lawsuit against MetaMask, speculation is mounting about whether Ripple’s case will be next.
However, regulatory uncertainty continues to shadow the token’s long-term prospects, including the possibility of an XRP ETF (exchange-traded fund).
Many XRP investors and legal analysts believe the SEC may be stalling in its decision-making process, further prolonging the token’s uncertainty. Meanwhile, some hope the SEC could drop the lawsuit against Ripple by April.
If this happens, it would mark a significant regulatory victory for XRP. Such an outcome could also pave the way for broader adoption and institutional investment.
BeInCrypto data shows XRP was trading for $2.43 as of this writing, up by over 4% since Wednesday’s session opened.
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