Shifting Ethereum, XRP Becomes Second Asset After Bitcoin Dominates South Korea's Market

JAKARTA - Bitcoin and XRP are the two most dominant crypto assets, particularly in the South Korean crypto market. The results of a recent survey conducted by Korean media, News1, revealed that Bitcoin (BTC) remains the main choice for crypto investors in South Korea, although competition is getting tighter with the presence of various other digital assets.

The survey, conducted from December 24 to 26, 2024, involved 5,225 respondents who were local crypto investors, and measured their preference for the top ten crypto assets by market cap in the country. As a result, Bitcoin took first place, followed by Ripple (XRP) in second place, while Ethereum (ETH) had to settle for third place.

This trend is not surprising considering Bitcoin has long been known as a leader in the world of digital assets, and this dominance is further strengthened by various external factors, such as the introduction of Bitcoin ETF and the potential for pro-crypto policy promoted by Donald Trump if he is elected US President.

In fact, many view Bitcoin as a safe asset, along with growing interest in it as a strategic reserve. In this case, XRP also shows a tremendous appeal in the South Korean market, beating Ethereum in terms of popularity.

Despite Ripple facing major challenges, such as a lawsuit with the US Securities and Exchange Commission (SEC), Korean investors continue to show strong support for XRP, with Ripple's market cap in Korea hitting 12.5% in the first half of 2022, much higher than its global figure of only about 2%.

Interestingly, Bitcoin Cash (BCH) also managed to beat Solana (SOL) and Cardano (ADA) in South Korean investor preferences, although BCH is globally in 20th place by market cap.

The survey showed Bitcoin Cash was preferred over Solana who was in 6th position and Cardano in 9th position. This shows that although their market position is lower globally, local factors such as economic policy and domestic investor preferences greatly affect investment decisions.

However, behind this optimism, there are concerns regarding South Korea's economic policy which is considered insufficient to support the attractiveness of domestic assets. Ki Young Ju, founder of CryptoQuant, criticized the government's policy regarding the management of Won Korea (KRW) which is considered to be exacerbating economic conditions, sparking massive capital outflows.