South Koreans are increasingly investing in XRP and Dogecoin (DOGE) as easing trade tensions between the United States and China drive a renewed appetite for riskier assets. Recent trading volumes on South Korean exchanges have surpassed those of Bitcoin (BTC) and Ethereum (ETH), indicating a significant shift in investor sentiment. This surge in interest in XRP and DOGE comes amidst a broader rally across crypto and equity markets, fueled by optimistic macroeconomic indicators suggesting potential interest rate cuts later this year. Over the past week, both XRP and DOGE have experienced impressive gains, climbing more than 15%, significantly outperforming Bitcoin’s 10% rise. Ethereum has also seen substantial growth, soaring nearly 40%, marking its strongest weekly performance since 2021. Market analysts attribute this trend to a ‘risk-on’ environment, with Augustine Fan, Head of Insights at crypto options platform SignalPlus, stating, "Risk assets have recovered sharply to levels that are now challenging even the most ardent bears."

The dominance of XRP and DOGE on Korean exchanges mirrors historical patterns, often referred to as the "Kimchi premium" era, where local investors aggressively pursued high-volatility assets. UpBit, the largest cryptocurrency exchange in Korea, has witnessed 24-hour trading volumes for XRP/KRW and DOGE/KRW exceeding $250 million, while Bitcoin and Ethereum volumes remain below $150 million. This dynamic reflects a classic retail investor phase, characterized by rapid, speculative trading. The current momentum is further bolstered by a massive $1 billion short squeeze last week, forcing leveraged positions to be closed as prices surged. Fan elaborated, "We subscribe to the view that this was a classic market short-squeeze against an exceptionally one-sided market."

Contributing to this bullish outlook is improving geopolitical sentiment, particularly the reduction of U.S.-China tariffs to 30% from 145% for 90 days, following weeks of speculation. Investors are becoming less apprehensive about cryptocurrency due to the resolution of trade talks and the anticipated possibility of interest rate cuts. Jeff Mei, COO of BTSE, noted, "Investors are less apprehensive about crypto as U.S.-China trade talks find resolution and rate cuts appear more likely." The expectation of a dovish pivot by the Federal Reserve in June, signaling a potential shift in monetary policy, could further propel Bitcoin towards all-time highs and stimulate lending and investment within the U.S. economy. While traders continue to monitor institutional ETF flows and upcoming central bank guidance, the short-term trend strongly suggests that altcoin speculation is currently driving the upward momentum. This dynamic highlights the ongoing influence of retail investor behavior on the cryptocurrency market, particularly within the Korean market, and underscores the interconnectedness of global financial trends.