This article may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services. Nonetheless, our opinions are our own.
As investors’ willingness to take on the crypto-associated risks increases, South Korean retail investors are flocking to the cryptos of the Dogecoin and Cardano blockchains, catapulting DOGE and XRP to the green zone. For a brief period, they overtook even the all-time leader Bitcoin and smart-contract frontrunner Ethereum in trading volumes on the largest local exchanges. This rise in demand reflects a broader “risk-on” sentiment moving across the nation’s financial markets, which helps explain the latest Dogecoin price surges and the growing media spotlight on XRP.
The rising appetite among South Korean retail investors in high-risk assets like DOGE and XRP raises concerns about the wisdom of unquestioningly jumping into these investments based on hype. Are everyday investors ready to handle crypto’s notorious volatility? Or is there a pressing need for more knowledge and preparedness?
With riskier investments gaining traction in hopes of larger returns, staying informed on the latest developments is more important than ever.
Photo source: https://www.freepik.com/free-vector/popular-cryptocurrency-logos-set_23678052.htm#fromView=search&page=1&position=0&uuid=a9df3fe2-4170-4105-8374-b17c8ec49512&query=Cryptocurrency
Climbing trading activity
South Korea has become a hub for crypto trading, especially as retail crypto trading volumes have lately jumped. Last year’s December saw the nation’s retail trading volumes rise to around $18BN, a staggering figure that exceeds the national stock market’s trading volume by 22%. This rise was instead driven by altcoins like Dogecoin and XRP instead of the leading cryptos by market cap, Bitcoin and Ethereum, contradicting what many would consider as the fuel to the flame.
XRP took over trading volumes on national exchanges, eclipsing Bitcoin in trading volumes. At the same time, Dogecoin hit $1.6BN in trading volume – an unmatched milestone regarding retail interest and demand in this meme-based crypto.
What drives the rally
A few key factors help secure the dominant places of XRP and DOGE among South Korea’s retail traders. Understanding them is essential if you’re looking to engage with the two cryptos – or any other cryptos, for that matter – and reduce the related risk as much as possible.
Positive regulatory developments
One of the most powerful catalysts behind the recent surge in DOGE and XRP, and consequently behind the heightened retail interest for them among South Koreans is the series of favorable regulatory changes in the U.S. Developments like the launch of FIT21, a legislative initiative aimed at providing regulatory certainty and better consumer protection, have added a layer of perceived legitimacy to these assets, prompting investor confidence.
XRP, for instance, has long been involved in a legal battle with the U.S. Securities and Exchange Commission (SEC), but recent developments in the case have led to increased optimism. A recent court ruling suggested that XRP might not be classified as a security, which could boost the asset’s adoption rates. South Korean investors are particularly sensitive to regulatory clarity, so it’s understandable how such legal victories boost crypto’s appeal.
Regarding Dogecoin, the fact that it hasn’t been directly involved in any legal battle benefits its image. Dogecoin keeps being perceived as “people’s coin” and Elon Musk’s persistent backing only supports this vision. Importantly, regulators haven’t found irregularities with DOGE—a rarity in today’s crypto landscape—due to its decentralized origins, meme coin status, and lack of initial coin offering (ICO). This makes DOGE an appealing asset for South Korean retail traders looking for high-volatility assets without legal dilemmas.
Elon Musk’s support for Dogecoin
Dogecoin’s rise in popularity is closely connected with Elon Musk, as the Tesla CEO has long advocated for the asset. As a quick example, the businessman organized a town hall in Pennsylvania last year and hyped up Dogecoin, leading to a 15% price surge in the 24 hours that followed. His public endorsements have often triggered price surges, and the fact that he’s now the lead of the Department of Government Efficiency (D.O.G.E.) under the new administration only boosts his power in the digital asset ecosystem. This development, while very controversial, significantly boosted Dogecoin’s media visibility and appeal among risk-tolerant retail investors, including South Korean ones.
New endorsement, this time for XRP
Elon Musk’s capacity to influence the market with just one tweet is often exploited. Widespread rumors these days are that Elon Musk could integrate XRP into the payment system of the X platform, thanks to its multiple real-world use cases. The business tycoon’s rumored attention toward Cardano’s XRP has boosted the asset’s appeal and sent shockwaves through the system. In a previous tweet that disappeared 20 seconds after its upload, Musk said that this asset is “looking quite promising”. However, no official data exists as to whether the network will leverage XRP.
Retail investor enthusiasm
South Korea is known for its eager retail investor community and its high-risk appetite. Retail investors in the country have demonstrated a strong liking for speculative assets, with a focus on those that promise substantial returns in a short period. This enthusiasm is partly driven by the low entry barriers for crypto trading, with many platforms offering easy access to a wide variety of altcoins.
Additionally, cryptos’ ability to offer around-the-clock trading has allowed South Korean traders to open and close positions in an instant and capitalize on short-term opportunities.
The beginning of an altcoin season
South Korea is seeing a notable shift toward altcoins, a move that helped Dogecoin and XRP outperform Bitcoin and other cryptos in terms of trading volume. People are witnessing the beginning of an “altseason”, short for altcoin season, as Bitcoin’s dominance declines in favor of the two altcoins.
Geopolitical uncertainty, emphasized by commotions like the tensions with North Korea, makes South Koreans steer clear of assets that central banks and traditional governments control. Cryptos aren’t tied to any international monetary policy and are decentralized, two traits that make them a good fit for those seeking financial freedom.
The last line
The South Korean government has indicated the issuance of new AML regulations aimed at extending opportunities for international participation in the cryptocurrency market. As the tech-savvy nation navigates the crypto system with all its opportunities, vulnerabilities, and emerging developments, South Korea is expected to keep facilitating the already-contouring altcoin season.
Reviewed and edited by Albert Fang.
See a typo or want to suggest an edit/revision to the content? Use the comment form below for feedback.
At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.
Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉
Article Title: South Korean Traders Flock to DOGE and XRP Amid Spiking “Risk on” Sentiment
https://fangwallet.com/2025/05/26/south-korean-traders-flock-to-doge-and-xrp-amid-spiking-risk-on-sentiment/The FangWallet Promise
FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.
The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.
Become an Insider
Subscribe to get a free daily budget planner printable to help get your money on track!
Make passive money the right way. No spam.
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned. The opinions expressed here are the author's alone.
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur including the potential loss of principal.
Source Citation References:
+ Inspo
There are no additional citations or references to note for this article at this time.
