South Korea’s crypto-asset (virtual currency) trading fanatics seem to be back, fueled by the rise of XRP (XRP).
XRP’s trading volume surged to billions of dollars on three South Korean exchanges, UpBit, Bithumb and Korbit, after its price climbed 26% over the past week.
According to data from CoinGecko and CoinMarketCap, in the last 24 hours, XRP’s volume accounted for a staggering 37% of Bithumb’s volume, 18% of UpBit’s volume, and 50% of Korbit’s volume. Calculated against the US dollar for UpBit and against the Korean won for Bithumb and Korbit).
Bitcoin (BTC) and Ethereum (ETH) typically account for the majority of trading volume on these exchanges, and the surge in XRP trading volume is unusual.
UpBit led the global XRP trade with over $790 million in XRP traded in the last 24 hours. On the other hand, Binance, the world’s largest trading volume, had $720 million (CoinGecko data).
In the crypto world, South Korean traders are known for their euphoric rise in crypto. The so-called “Kimchi Premium” is a term used to describe the fact that bitcoin prices on Korean exchanges can trade at a premium of as much as 30% compared to exchanges in other regions.
Wash trades may be one of the reasons for XRP’s high volume. Wash trading is a technique in which traders buy and sell assets continuously to increase trading volume by falsifying market movements.
With the Commodity Futures Trading Commission (CFTC) classifying Bitcoin and Ethereum as commodities in its lawsuit against Binance, it arose from speculation that XRP might also be classified as a commodity by the CFTC.
Such a move could also affect the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, which alleges XRP is a security. Being classified as a commodity means that Ripple will win the lawsuit, which some traders see as bullish for XRP.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: XRP Trading Volumes Surges to Billions of Dollars on South Korean Crypto Exchanges