In 2025, about 160 trillion KRW (roughly $110 billion) flowed out of Korea’s crypto market, signaling liquidity moving offshore rather than a collapse. The first nine months alone saw 124 trillion KRW leave, driven not by people fleeing but by a structural loss of incentive to trade in won. By Q4, outflows slowed to about 36 trillion KRW, a brake more consistent with policy expectations than with a systemic breakdown.
Domestic KRW exchanges endured an 80% drop in trading volume year over year, with Upbit reportedly averaging around 1 trillion won per day reflecting the liquidity thinning. Crypto deposits across the five largest venues declined sharply, widening the order-book gaps and increasing the risk of abrupt moves. The outflow’s composition is telling: stablecoins accounted for about 42%, suggesting money moved in a more liquid, transferable form rather than simply being dumped.
Amid the shift, XRP has remained a focal point, ranking near the top of Upbit’s cumulative daily volumes and reportedly representing around 14% of trading. While early 2025 saw XRP trading bursts of 1.6–2 trillion won per day, the current pace has faded to about one-tenth, creating a vacuum that could precede a large rally. The reason this vacuum forms is because Korea’s policy stance may loosen around 1 exchange, 1 bank; a KRW-stable pilot could renew domestic incentives to stay and trade. In the U.S., regulators have moved to accelerate a physical crypto ETP listing by September 2025, and XRP-linked ETFs are set to begin trading by November 2025, potentially opening the door for institutional inflows.
Conclusion: The picture is liquidity depletion and regulatory transition rather than a collapse. Investors should monitor structural changes in policy, ETFs, and stablecoins rather than price ranges like $1.86–$1.94, as those ranges can swing violently on news in thin markets. On a global note, Ripple formed a partnership with a major Saudi bank, underscoring how cross-border banking ties can influence crypto markets. XRP’s resilience is linked to the broader convergence of Middle East business, U.S. Treasuries, and banking infrastructure.
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