Retail cryptocurrency trading in South Korea has hit a staggering $18 billion in the past 24 hours, outpacing the country’s stock market trading volume by 22%.
This marks the second-highest daily cryptocurrency trading volume of the year, driven by rising interest in high-growth altcoins.
Altcoins dominate trading activity
Ripple's XRP token led the frenzy, generating over $6.3 billion in trading volume, followed by Dogecoin (DOGE) at $1.6 billion and Stellar (XLM) at $1.3 billion.
Other notable altcoins, including Ethereum Name Service (ENS) and Hedera (HBAR), saw volumes of $900 million and $800 million, respectively.
“These high momentum cryptocurrencies are being driven predominantly by retail traders, capitalizing on and reinforcing momentum-driven trends,” said Markus Thielen, founder of 10x Research.
The report highlighted the exceptional performance of older tokens, often referred to as “dino coins” by crypto enthusiasts. XRP, ENS and HBAR recorded weekly gains of 90%, 73% and 168% respectively, outperforming much of the broader market.
Signs of an “Altseason”
Thielen also pointed to a relatively mild Bitcoin funding rate of 15% annualized, suggesting subdued leveraged activity for Bitcoin as altcoins take center stage. He identified the current surge in altcoin trading volumes as a clear indication that an “altseason” is underway.
“We are seeing one of the largest divergences on record between a relatively soft Bitcoin funding rate and skyrocketing retail trading volumes in Korea,” Thielen noted. He advised investors to adopt disciplined strategies to ride these market waves.
XRP’s historic rally
Ripple’s XRP has been a standout performer, rising from $0.50 to a yearly high of $2.80 in just one month, representing a 436% increase, according to Cointelegraph. This impressive rally has catapulted XRP to third place in the global cryptocurrency rankings by market cap, surpassing Solana (SOL) and Tether (USDT).
It’s also worth noting that South Korean lawmakers have approved a delay in implementing a capital gains tax on digital assets until January 2027. The government initially proposed a two-year delay, while the ruling People Power Party suggested a three-year postponement. However, the Democratic Party opposed both proposals and instead advocated for increased tax exemptions on cryptocurrency profits.