South Korea Crypto Holdings Halve; XRP Dominance Grows

South Korean Crypto Holdings Halve as XRP Dominance Intensifies

The value of cryptocurrency held by South Korean investors has plummeted by nearly half over the past 13 months, according to data from the Bank of Korea. As of the end of February 2026, total holdings stood at 60.6 trillion won ($41.4 billion), down sharply from 121.8 trillion won ($83.3 billion) at the end of January 2025. The figures, submitted to a National Assembly committee and reported by The Chosun Daily, underscore a dramatic shift in retail sentiment and market dynamics in one of the world's most active crypto markets.

Meanwhile, XRP has emerged as the dominant cryptocurrency on South Korea's largest exchange, Upbit, consistently accounting for a significant share of trading volume. This trend highlights a growing preference among Korean traders for the Ripple-linked token, even as the overall market contracts.

Original Commentary: A Tale of Two Trends

The simultaneous halving of holdings and the rise of XRP dominance may seem contradictory, but they reflect a maturing market. The 50% drop in total value is largely attributable to the broader crypto market correction and profit-taking after the rally that followed the US presidential election in late 2024. Many Korean investors, known for their high-risk appetite, likely moved funds to stablecoins or exited positions to lock in gains. However, the persistent interest in XRP suggests that a core group of traders remains active, possibly speculating on the outcome of Ripple's legal battles or the token's role in cross-border payments.

From a historical perspective, South Korea's crypto market has often been a bellwether for global trends. The 2017–2018 boom saw massive inflows, followed by a steep crash. The current decline is less dramatic but more sustained, indicating a structural shift. The Bank of Korea's data also reveals that the number of investors has dropped, though not as sharply as the value, implying that smaller retail players are still present but with reduced capital. This could signal a move toward institutional involvement or a wait-and-see approach ahead of potential regulatory changes.

Looking forward, the South Korean government's stance on digital assets will be crucial. The upcoming implementation of the Virtual Asset User Protection Act and possible taxation frameworks could either restore confidence or drive further capital flight. XRP's dominance may also be tested if regulatory clarity favors other tokens or if global liquidity conditions tighten.

Key Takeaways

1. South Korean crypto holdings fell 50% from 121.8 trillion won ($83.3B) to 60.6 trillion won ($41.4B) between January 2025 and February 2026.
2. XRP dominates trading on South Korea's largest exchange, Upbit, reflecting sustained local interest despite the market contraction.
3. The decline is likely driven by profit-taking and market corrections, while XRP's popularity may stem from its unique legal and use-case narrative.

Sources: The Chosun Daily (via CoinMarketCap Academy) and CryptoNews.