South Korean GenZ Prefers XRP Over Bitcoin and Ethereum in Crypto Investments

By Kevin • August 24, 2023 5:49 pm • Comments

South Korea’s Generation Z (GenZ), known for its tech-savvy nature and interest in crypto investments, is making waves in the cryptocurrency landscape.

A recent report by South Korean news outlet News1 Korea highlights a distinctive trend among GenZ investors— they have a strong preference for altcoins, particularly XRP, over more established cryptocurrencies like Bitcoin and Ethereum.

The study analyzed investment data from Bithumb, a prominent South Korean crypto exchange, shedding light on varying investment behaviors across different age groups.

Trending: Brand New Wells Fargo Report Classifies XRP As A Currency

GenZ investors, typically in their 20s, exhibited a greater inclination towards “aggressive” investment strategies, showing a notable preference for altcoins—alternative cryptocurrencies that differ from Bitcoin and Ethereum.

Bitcoinist reports:

The report undertook a detailed study of investment data on Bithumb, one of South Korea’s leading crypto exchanges. The findings from this analysis illuminate the distinctive investment behaviors of different age groups, especially emphasizing the choices made by GenZ investors.

The investment propensity based on age revealed that GenZ or those in their 20s are more inclined towards “aggressive” investment proneness.

This emerging generation of investors is displaying a pronounced preference for altcoins, alternatives to the dominant cryptos such as Bitcoin (BTC) and Ethereum (ETH).

In this study, Bitcoin and Ethereum are categorized as “long-term” and “stable investments” owing to their perceived low volatility in the market.

Bitcoin and Ethereum were categorized as “long-term” and “stable investments” due to their perceived lower market volatility.

However, the report revealed that around 82.5% of GenZ investors allocated their funds to altcoins, excluding Ethereum.

Notably, XRP stood out, with 20.7% of GenZ investors choosing it as their primary altcoin investment.

Contrastingly, investors in their 30s displayed a stronger affinity for Bitcoin and Ethereum.

This divergence suggests that while GenZ is open to exploring newer and potentially riskier altcoins, the older generation remains more aligned with established crypto leaders.

This trend was further illuminated by a report from the crypto derivatives platform Bitget, which noted that nearly half of the crypto copy traders on the platform belong to the GenZ demographic.

TheCryptoBasic reports:

A noteworthy observation emerges with investors in their 60s who have allocated 23% of their crypto investments to the two leading digital assets.

According to the report, this age group stands out for having a significant portion of their portfolio going to Bitcoin and Ethereum.

Other age demographics in the report include investors in their 50s, who allocated 22.2%, and those in their 40s, who allocated 21.7% to BTC and ETH, respectively.

XRP maintained a consistent presence among all age groups’ portfolios, recording the highest investment ratio among all participants. South Korean Investors in their 20s, 30s,50s, 40s and 60s had an XRP investment ratio of 20.7%, 17.0%,14.9%, 13.8% and 11.8% respectively.

The report also touched on the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC) regarding XRP.

Crypto lawyer John Deaton asserted that this legal tussle has potentially set XRP’s trajectory back in the US market by three years, significantly impacting its adoption and growth.

Currently trading at $0.52 with a 1.9% increase over the past 24 hours and a 24-hour trading volume of $1 billion, XRP’s popularity among South Korean GenZ investors remains noteworthy.

As different age groups continue to diversify their crypto portfolios, the shift towards altcoins like XRP presents an evolving dynamic in the cryptocurrency investment landscape.

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