Ripple's XRP has recently surged past Ethereum's popularity among South Korean investors, indicating shifting preferences within the rapidly changing cryptocurrency market. A survey conducted by Korean news outlet News1 from December 24 to December 26, 2024, revealed compelling insights. While Bitcoin continues to reign supreme as the most preferred cryptocurrency, XRP has overtaken Ethereum, marking another significant milestone for the blockchain venture.
The survey reported responses from over 5,220 investors and included the top 10 cryptocurrencies by market capitalization within South Korea. The results were clear: Bitcoin claimed the top spot, followed closely by XRP, with Ethereum now relegated to third. The longstanding dominance of Bitcoin was expected; after all, it has been the frontrunner for years. Ripple's XRP, on the other hand, has maintained a strong following, especially since being dubbed the 'favorite coin' of many South Korean investors since 2017.
Despite facing various challenges, particularly legal battles with the U.S. Securities and Exchange Commission (SEC), Ripple has continued to enjoy unwavering support. Its recent price increase of 400% over the course of 2024 has only solidified its standing among investors. The report emphasizes not just the numbers but also the emotional connection many investors, especially in South Korea, have with XRP, which seems to resonate well within the local market.
Meanwhile, the Korean economic backdrop presents potential challenges for cryptocurrency markets. Ki Young Ju, the CEO of CryptoQuant, expressed serious concerns about the state of the Korean economy. He critiqued the government's economic policies and highlighted the strength of the Korean Won, making domestic assets less appealing compared to cryptocurrencies. Ju noted, "The value of Tether’s (USDT) on Upbit has caught up to the IMF rate, which can be bad for the South Korean economy," hinting at underlying issues within traditional markets.
All this is happening as Ripple continues to ramp up its operations. Brad Garlinghouse, Ripple's CEO, asserted the surge of business activities within the U.S. was largely influenced by anticipated regulatory changes under President-elect Donald Trump. Ripple's business dealings have flourished, leading to nearly as many contracts in the last six weeks of 2024 as it had achieved over the previous six months combined. This tidbit, paired with Garlinghouse’s enthusiastic proclamation on social media, showcases the rising optimism within the crypto sector amid political shifts.
Garlinghouse remarked, "Say what you want, but the ‘Trump effect’ is already making crypto great again," illustrating the bullish sentiment surrounding the cryptocurrency market stemming from Trump’s imminent presidential term. This wave of optimism has led various crypto firms, including Robinhood and Consensys, to also bolster their workforce with intentions to capture growth opportunities as regulations possibly loosen.
With the anticipation of more favorable regulations, the crypto market has already responded positively, evidenced by Bitcoin crossing the $100,000 milestone and the total crypto market value climbing by 9% to $3.7 trillion within the first week of 2025. XRP, now representing one of the biggest players, stands at a value of $135 billion, consolidifying its position as the fourth most valuable cryptocurrency.
Moving forward, the intersection of your favorite cryptocurrencies and broader economic sentiments will remain key to sustaining market interest. Ripple's growth, fueled by local investor enthusiasm and international political dynamics, sets the stage for a potentially vibrant chapter for the cryptocurrency sector. Given the clear support for XRP among South Korean investors, it will be intriguing to observe how this sentiment translates to sustained performance against Ethereum and Bitcoin.