In a remarkable market development, XRP is defying the broader cryptocurrency downturn, holding on to most of its gains earlier in the month while most major digital assets retreat.
This exceptional performance stems from an extraordinary surge in South Korean trading activity, where Upbit—the country’s largest cryptocurrency exchange—has emerged as the dominant global player in XRP trading.
Upbit Dominance
Recent data from CryptoQuant reveals a significant shift in XRP reserves, with Upbit now holding an impressive 5.9 billion tokens—more than double Binance’s 2.9 billion. This concentration of tokens reflects South Korea’s growing influence on XRP’s market dynamics.
According to CoinMarketCap, Upbit now accounts for 18% of global XRP trading volume, surpassing Binance’s 12%, with other major platforms like Coinbase, Bybit, and Bitget trailing significantly behind.
The numbers are staggering: XRP trading volume on Upbit alone has exceeded $1 billion in a 24-hour period, surpassing the combined volumes of Bitcoin and Ethereum on the platform. This trading frenzy isn’t isolated to Upbit, with other major South Korean exchanges—Bithumb, Korbit, and Coinone—also reporting massive XRP activity.
The “Kimchi Premium”—a phenomenon where cryptocurrencies trade at higher prices in South Korea due to strict capital controls—partially explains this regional enthusiasm. With over 30% of South Korea’s population invested in digital currencies, the country has become a powerhouse in determining XRP’s market direction. Google Trends data shows XRP search interest hitting a five-year high in South Korea, signaling growing retail participation.
Bullish Catalysts Align As Settlement Hopes Rise
Multiple catalysts are converging to fuel XRP’s exceptional performance. Perhaps most significant is Ripple’s proposed $50 million settlement with the Securities and Exchange Commission (SEC), filed on May 8. This agreement seeks to resolve the SEC’s civil enforcement action against Ripple executives Chris Larsen and CEO Brad Garlinghouse, potentially removing a major regulatory overhang that has suppressed XRP’s price for years.
Market sentiment indicators strongly favor XRP’s upward trajectory. Cumulative volume delta—a metric tracking whether buying or selling pressure dominates—has flipped decisively bullish, indicating aggressive accumulation. On derivatives markets, perpetual futures contracts show long positions outnumbering shorts by a remarkable three-to-one margin, the widest gap among major cryptocurrencies.
Prediction markets reflect this optimism, with Polymarket showing a dramatic shift in sentiment. Bettors now give XRP a 78% chance of ending May above $2.19, up from just 40% a week earlier. Another market gives the token a 56% probability of reaching $2.80 this month, reversing previous expectations of a decline to $1.90.
Adding to the bullish momentum is recent speculation about President Trump’s proposed national cryptocurrency reserve potentially including XRP, briefly sparking a rally before broader market corrections took hold. Meanwhile, institutional players remain active, with “whale” accounts accumulating over 300 million XRP tokens in a single week.
Standard Chartered’s head of digital assets research, Geoffrey Kendrick, has issued ambitious price targets for XRP, forecasting a rise to $5.50 this year, $8.00 by 2026, and potentially exceeding $12 in 2029—representing a 382% increase from current levels.
As South Korean enthusiasm continues driving XRP’s exceptional performance amid a broader market pullback, all eyes remain fixed on regulatory developments and whether this regional trading phenomenon will catalyze sustained global momentum.
