A recent survey reveals Ripple (XRP) has surpassed Ethereum (ETH) as the second-most popular cryptocurrency among South Korean investors, while Bitcoin (BTC) continues to hold its long-standing position as the top choice.
Bitcoin Reigns Supreme
From 24 to 26 December 2024, a survey conducted by Korean news outlet News1 gathered insights from over 5,220 investors about their preferred cryptocurrencies. The findings showed Bitcoin as the undisputed leader, with XRP taking the second spot and Ethereum falling to third place.
Bitcoin’s dominance in South Korea mirrors global trends, with the cryptocurrency widely seen as the most reliable and established asset in the digital space. Its first-mover advantage and extensive adoption ensure its continued appeal to investors.
Ripple’s Resurgence in Popularity
Ripple’s popularity in South Korea is not a recent phenomenon. Known as the “favourite coin” among Korean investors since 2017, XRP has consistently maintained a loyal following despite facing global challenges, including a high-profile lawsuit with the U.S. Securities and Exchange Commission (SEC).
In 2024, Ripple experienced a dramatic 400% price surge, cementing its position as a strong contender in the crypto market. South Korean investors’ enthusiasm for Ripple is attributed to its affordability, practical use cases, and ease of trading on local exchanges.
Ethereum Drops to Third Place
Ethereum, which previously held the second spot, now ranks third among South Korean investors. While Ethereum remains a cornerstone of the blockchain ecosystem due to its smart contract capabilities and role in decentralised applications, the survey suggests its high transaction fees and scalability challenges may have contributed to its decline in local popularity.
South Korea’s preference for more affordable and accessible tokens like XRP might also explain Ethereum’s slip in rankings.
Economic Concerns Cloud Crypto Investments
Amid the shifting preferences in cryptocurrencies, concerns about South Korea’s economic environment are growing. CryptoQuant CEO Ki Young Ju highlighted troubling signs, including the rising value of the Korean Won and the diminished appeal of domestic assets.
Ju also pointed to the parity between Tether’s (USDT) value on the South Korean exchange Upbit and the International Monetary Fund (IMF) rate as a red flag for the nation’s economy. This convergence signals reduced confidence in traditional assets and an increased reliance on cryptocurrencies as a hedge against economic uncertainty.
