XRP Dethroned by AI Crypto in South Korea

South Korean Traders Pivot to AI Cryptocurrencies, Overtaking Payment Tokens

South Korean cryptocurrency traders are increasingly shifting their focus from payment-centric digital assets like XRP towards cryptocurrencies linked to artificial intelligence. By June 2026, AI tokens have emerged as the dominant thematic category in the country’s crypto trading landscape, according to a new report by blockchain analytics firm Chainalysis.

The report, which analyzed crypto activity in East Asia from July 2025 to June 2026, measured thematic categories by their share of trading volume denominated in the South Korean won. AI cryptocurrencies ascended to become the most popular thematically defined investment category in South Korea by June 2026, surpassing established payment tokens.

Chainalysis defines AI cryptocurrencies as digital assets associated with AI-focused projects or infrastructure. This category commanded a significantly larger portion of won-denominated trading compared to AI crypto markets in other major currencies. The report explicitly stated that AI cryptocurrencies had become the “single most popular thematically-defined investment category” in South Korea, eclipsing payment tokens such as XRP.

Several AI-linked tokens saw substantial trading volumes among South Korean investors during the report’s timeframe. While specific token names were not provided in the source text, the report indicated a shift in leadership within the AI category. Tokens like VIRTUAL and KAITO were prominent in 2025, but Worldcoin and SAHARA later took the lead.

Chainalysis observed that South Korean retail traders are engaging with the AI crypto sector with greater speed and intensity than traders in other markets examined in the report. The robust activity in South Korea’s AI crypto market is particularly striking when compared to other major currencies.

In June 2026, the share of AI-crypto trading denominated in the Korean won was 19.5 times higher than that of the Japanese yen. AI cryptocurrencies constituted 0.91% of yen-denominated trading, a stark contrast to the substantially higher proportion seen in the South Korean market. For context, the AI crypto category represented 1.02% of euro-denominated trading, 0.20% of Brazilian real-denominated trading, and a mere 0.03% of British pound-denominated trading.

Chainalysis attributes the surge in AI token trading to South Korea’s broader engagement with the artificial intelligence investment cycle. The country’s stock market, for instance, has significant exposure to SK Hynix, a key manufacturer of memory chips essential for AI data centers. The report noted that AI-focused crypto trading activity grew in parallel with the company’s market ascent.

South Korea’s cryptocurrency market is also heavily influenced by retail investors. Francis Kang, executive director of Korea Blockchain Week, characterized the market as “famously retail-driven.” Chainalysis further highlighted that Korean retail investors typically pursue high-risk, high-reward investment opportunities.

This pivot towards AI cryptocurrencies occurs as South Korea’s overall crypto market continues its expansion. The country recorded approximately $449 billion in crypto activity during the period covered by the report, representing a 12.3% increase and solidifying its position as the largest crypto market in East Asia. The nation’s exchange ecosystem also grew by 16.3%, even as the broader East Asian crypto market experienced a modest contraction.

For XRP, the data signifies a discernible change in South Korean retail trading preferences. While XRP remains a significant asset in the market, AI-linked cryptocurrencies have now taken precedence among thematic categories as traders increasingly embrace the AI narrative.