XRP Outperforms Amid Surge in South Korean Trading Volumes as Crypto Markets Begin 2025 with Optimism
XRP surged 11% on Thursday, outpacing other major cryptocurrencies, driven by a spike in trading volumes from South Korean exchanges. A recent CoinDesk analysis pointed out that the high trading activity on platforms like UpBit is often a precursor to price volatility, typically leaning towards an upward trajectory.
As of Thursday, XRP led the charge among major digital assets, supported by $1.3 billion in trading volume on UpBit, a Korea-focused exchange. This surge in volume is seen as a key factor behind the coin’s strong performance. Meanwhile, other top cryptocurrencies also saw notable gains, with Cardano (ADA), Solana (SOL), and Chainlink (LINK) rising by as much as 8%. Ether (ETH) and Binance Coin (BNB) posted more modest increases of 3%, while memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) gained 5%.
The CoinDesk 20, an index tracking the largest liquid cryptocurrencies by market capitalization, excluding stablecoins, climbed by 5.8%, signaling strong broad-based growth across the sector.
Optimism surrounding the new year has been bolstered by expectations of more crypto-friendly policies under incoming U.S. president Donald Trump, who has pledged support for the industry, including a potential strategic bitcoin reserve. This has fueled hope for an even more positive crypto market in 2025.
The 2024 Bitcoin halving event is also anticipated to trigger a bullish trend in the market, as it reduces the influx of new tokens into circulation. Historically, the crypto market follows a four-year cycle driven by the halvings, with memecoins, artificial intelligence, and real-world assets expected to be the frontrunners this time.
Beyond cycle-based predictions, research firms like Galaxy Research predict significant institutional, corporate, and nation-state adoption of bitcoin, with at least five Nasdaq-100 companies and five countries expected to invest in the asset. Galaxy Research forecasts a target price of $185,000 for bitcoin and $5,500 for ether in 2025.
Singapore-based QCP Capital shares a similar outlook, noting that January could mark a key moment for institutional reallocations. “As BTC becomes more widely adopted by institutions, we expect increased allocations, reinforcing Bitcoin’s dominance, stabilizing spot movements, and aligning its volatility more closely with traditional equities,” the firm said in a Telegram broadcast. “Expect stronger demand for downside puts and more covered call selling on the topside.”
Some analysts believe that as bitcoin continues to gain mainstream acceptance, its notorious volatility will diminish, potentially driving even greater institutional adoption.
Augustine Fan, head of insights at SOFA, shared this perspective with CoinDesk, stating, “Bitcoin’s strong correlation with the S&P 500 (SPX) has remained the most significant as we close out 2024. This signals that BTC is moving closer to becoming a mainstream asset class. Additionally, as its realized volatility declines, bitcoin will become more attractive to traditional portfolios, offering diversification benefits and alpha potential.”
Fan added, “As crypto matures, its volatility should continue to decrease, and we believe this trend will mirror the development of other asset classes.”
