XRP and DOGE Surge as Korean Retail Traders Return to Risk-On Mode

South Korean retail investors are showing renewed appetite for risk, with trading volumes in XRP and Dogecoin (DOGE) surpassing those of Bitcoin (BTC) and Ethereum (ETH) on major local exchanges. This marks a shift in sentiment as speculative traders re-enter the market amid easing U.S.-China trade tensions and expectations of interest rate cuts.

According to data from Upbit, Korea’s largest exchange by volume, XRP/KRW and DOGE/KRW each saw over $250 million in 24-hour trading, outpacing BTC and ETH pairs, which stayed below $150 million. The trend echoes Korea’s past “Kimchi premium” phases, where local retail enthusiasm drove aggressive altcoin rallies.

XRP and DOGE have risen over 15% in the past week, outstripping Bitcoin’s 10% gain. Ethereum jumped nearly 40%, its strongest weekly performance since 2021. Analysts attribute this to a $1 billion short squeeze last week, which triggered a wave of liquidations and fueled price surges. Augustine Fan of SignalPlus noted the market is still experiencing a “pain trade” higher, as bearish positions continue to unwind.

Notably, the spike in ETH came without significant ETF inflows, suggesting the move was driven by internal market dynamics rather than institutional demand. Improved geopolitical sentiment has also supported the rally, with U.S. and Chinese officials agreeing to reduce tariffs on certain goods from 145% to 30% for a 90-day period.

Jeff Mei, COO of BTSE, said crypto investors are becoming more confident as macro risks ease. If the U.S. Federal Reserve adopts a dovish stance next month, Bitcoin could break all-time highs and further boost market liquidity and lending.

Altcoin speculation, led by Korean retail traders, is currently driving momentum across the crypto market.