XRP Falters In Face Of Rival XLM: Why Retail Traders Are Dumping One For The Other

The rivalry between XRP and Stellar (XLM) has lasted for years, with investors often comparing the two payment-focused cryptocurrencies due to their shared origins and similar use cases. While XRP has long maintained a larger market presence, XLM appears to be gaining the upper hand in some regions. A new report shows that retail traders in South Korea are now dumping XRP for XLM, fueling a surge in Stellar’s market value while XRP’s price continues to decline. 

XLM Surpasses XRP In Trading Volume In South Korea

Stellar’s native token, XLM has moved ahead of XRP in a major shift on South Korea’s largest crypto exchange, Upbit. The development comes as retail traders pour into XLM, pushing its trading activity above one of the country’s most popular digital assets.

Data shared by market analyst Xaif Crypto shows XLM recorded about $252.3 million in 24-hour trading volume on Upbit. XRP, by comparison, posted around $125.7 million during the same period, less than half the volume seen in XLM. This staggering gap marks the first time XLM has surpassed XRP in trading volume, now ranking number one on Upbit.

The latest surge comes after interest in Stellar’s role in tokenized finance surged in South Korea. Traders reacted positively to recent plans linking the blockchain network to tokenization efforts involving the US Depository Trust & Clearing Corporation (DTCC), one of the largest financial market infrastructure firms in the world. 

The DTCC news helped fuel fresh demand for XLM among South Korean investors, who usually prefer to trade XRP. Notably, XLM has also seen strong price gains alongside the rise in trading activity. Reports show the token climbed more than 55% to $11 over the past week as momentum continued to build across the market. XRP, meanwhile, has struggled to match the rally, even falling below $1.3, despite its longstanding popularity among South Korean traders.

This shift in interest and demand is notable because XRP has historically been one of the most traded cryptocurrencies in Asian markets like South Korea, Japan, and Thailand. Just weeks ago, XRP was leading trading volume on South Korea’s Upbit ahead of Bitcoin and Ethereum. However, the latest figures suggest retail attention has now rotated toward XLM as traders chase the strongest momentum in the market.

Analyst Forecasts Bull Run For XRP After XLM Rally

In a separate analysis, crypto analyst CW believes XRP could be the next major winner after Stellar’s recent breakout. In a post shared on X, the analyst said the bullish rally for XLM has already begun and suggested XRP is now in a similar position before its own move higher.

According to CW, XRP is waiting for a “start signal” and is currently trading around the same level where XLM was before its recent 57% price rally. The analyst argued that XRP could follow XLM’s bullish path if momentum continues to build.

However, CW’s chart projects a much larger move for XRP, targeting potential new all-time highs near $56. While the prediction remains highly speculative and ambitious given the cryptocurrency’s current low price, it reflects growing optimism among some market participants who believe XRP has yet to make its biggest move in the current cycle.