XRP's Surge in South Korean Crypto

in LeoFinance4 months ago

Oh, the world of crypto, there's never a dull moment. The minute never goes by, except for some interesting events. XRP, a token from the all-time-financial platform Ripple, has taken over the South Korean crypto markets, outshoned Bitcoin in related trading volumes, and conduited trading markets. I love it when local markets sometimes push to have their own identity, and South Korea has always been a den of crypto enthusiasm.

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What I mean is, from what I see, XRP accounted for a stunning 40% of the trade on UpBit, Korea's largest exchange. That is huge! It does not happen so often that Bitcoin gets dethroned, if only for a while. If you were to ask me, this surge in interest could have been due to the confluence of a lot of factors all at once.

Very recently, the announcements by CME and CF Benchmarks regarding the introduction of XRP indices must have built up some hype. I would say, though, that it was Brad Garlinghouse's positive commentary relating to the settlement of the suit by the SEC that really lit the fuse.

I find the interaction of the news with the crypto prices quite interesting, to be honest. It's almost like running a real-time experiment inside the market's mind. In this case, I think Korean traders are betting big on Ripple's positive result. Pretty risky, but then again, crypto is high-risk by nature.

Yet, I am not too bullish about its move, which can be so drastic. After all, markets have a tendency to overshoot, especially in crypto; therefore, anything moving too far one way is an exception and not the rule, and what goes up must come down. I believe traders who are looking to pile up now on XRP could be in for quite a roller coaster.

Remember: even positive news can lead to "buy the rumor, sell the news.".

It is hard to underestimate the force of local media and influencers in driving those trends. I saw this same phenomenon in the rest of the markets; only South Korea seems more susceptible to these waves of crypto enthusiasm. It is definitely a double-edged sword that the same drives may fuel innovation and adoption but, at the same time, induce volatility and thus potential losses for late entrants.

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This should be quite interesting moving forward. Would XRP build on this momentum or experience a pullback? I feel that much lies in suspense for this token vis-à-vis the real resolution of the SEC case. If it were to go in favor, we may see this rally globally. Not so much if not; you wouldn't want to be holding some XRP at the very top.

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