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Retail enthusiasm for cryptocurrency has reached new heights in South Korea, with significant trading activity surrounding “high momentum” tokens like XRP and DOGE.
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The latest report from 10x Research reveals a staggering $18 billion in retail trading volumes over the past 24 hours, surpassing the entire South Korean stock market by 22%.
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“These high-momentum cryptocurrencies are being driven predominantly by retail traders, capitalizing on and reinforcing momentum-driven trends,” noted 10x Research founder Markus Thielen.
South Korea’s retail crypto trading volumes surge to $18 billion, led by XRP and DOGE, signaling the onset of an ‘alt season’ amidst growing market dynamics.
Retail Trading Surge in South Korea: A Closer Look at the Numbers
The crypto market has seen a remarkable surge in trading activity, particularly among retail investors in South Korea. As of December 2, the trading volume for cryptocurrencies reached an impressive $18 billion within a single day. This figure not only highlights the increasing interest in digital assets but also showcases a significant market shift where retail traders are taking the lead. Markus Thielen of 10x Research emphasized this trend, stating, “Retail crypto trading volumes had reached their second-highest level of the year on Dec. 2.”
High Momentum Tokens Capture Retail Attention
Among the standout performers in this trading frenzy are tokens like Ripple’s XRP, which recorded a remarkable $6.3 billion in trading volume on the same day. Other contenders include Dogecoin (DOGE) at $1.6 billion and Stellar (XLM) at $1.3 billion. This shift in focus towards altcoins such as Ethereum Name Service (ENS) and Hedera (HBAR) demonstrates that traders are not only relying on major players like Bitcoin.
The Implications of Bitcoin’s Funding Rate
Bitcoin’s funding rate is an important metric that reflects the market’s overall sentiment. Currently, it sits at a reasonably low 15% annualized rate. Thielen noted that the combination of a gentle funding rate alongside soaring altcoin activity is an indicator of an emerging “alt season.” He remarked, “We are seeing one of the largest divergences recorded between a relatively mild Bitcoin funding rate and a retail trading volume ramp-up.”
Historical Rally of XRP and Market Positioning
Ripple’s XRP has experienced an extraordinary rally, ascending from a price of $0.50 to a staggering $2.80 within a month. This translates into an impressive 436% increase in value, allowing XRP to surpass both Solana (SOL) and Tether (USDT) in market capitalization. Its rise to the third-largest crypto asset has drawn attention from both traders and analysts, showcasing the volatile yet lucrative nature of altcoins in today’s market.
Conclusion
The significant retail trading volume and the focus on high-momentum tokens are indicative of a shifting dynamic in the crypto market, signifying a potential long-term trend towards altcoin investments. As South Korean traders embrace this new wave of cryptocurrency, it becomes clear that strategic planning and disciplined trading will be crucial for capturing future opportunities in this volatile landscape.
