In the face of a political crisis and economic uncertainty, South Korean investors are opting for XRP (CRYPTO:XRP) over Bitcoin (CRYPTO:BTC) and Tether (CRYPTO:USDT) to protect their assets.
The ongoing turmoil includes widespread protests calling for President Yoon Suk Yeol's impeachment and a sudden declaration of martial law.
Unlike the global trend of turning to Bitcoin during crises, South Korean traders are piling into XRP, which has become the most traded asset on local exchanges.
Ian Cho, a founding member of ITAM Games, noted the unique trading environment, saying, “I anticipate the Korean trade volume will see an all-time high and extreme volatility.”
South Korea's fiat currency, the won, has dropped 7% this year, hitting a two-year low on Wednesday.
Local exchange Upbit has gained significant market share during the crisis, jumping from 4% in July to 11% now, according to data from Kaiko.
Zhong Yang Chan of CoinGecko reported that XRP generated four times more trading volume than Bitcoin on Upbit over the past 24 hours.
On Tuesday, trading volume on South Korean exchanges reached $34 billion, according to Digital Asset, a local crypto news outlet.
However, the crisis has caused extreme market disruptions.
Bitcoin plummeted by 33% to $61,000 on South Korean exchanges, while XRP dropped 50%, despite its global value surging by 63% over the past week.
This pricing disparity, often referred to as the "Kimchi Premium," has created arbitrage opportunities for savvy traders.
"Yay for arbitrage," remarked Ian Cho, highlighting the chance to exploit the valuation gap by buying in South Korea and selling elsewhere.
The crisis escalated when President Yoon declared martial law without consulting lawmakers, sparking outrage across the political spectrum.
The declaration disrupted decades of democratic stability, leading to sharp economic consequences, including double-digit drops in crypto valuations on local platforms.
At the time of reporting, Ripple price was $2.22.