AI Cryptos Surpass XRP as Top Traded Assets in South Korea

AI-related cryptocurrencies have surged in popularity among South Korean traders, surpassing even XRP in trading volume. According to Chainalysis, by June 2024, AI tokens became the most traded crypto category in South Korea, with Worldcoin (WLD) leading the charge. WLD's annual trading volume reached $7.41 billion, more than double that of Sahara AI (SAHARA), which saw $3.2 billion in trades.

The rise of AI tokens in South Korea is driven by retail investors' appetite for high-risk, high-reward assets. This trend mirrors similar behavior in the stock market, where demand for AI-related stocks like SK Hynix has also increased. Despite a 12.3% overall market growth to $449.1 billion, the AI crypto segment has stood out, with trading volumes growing in tandem with chip manufacturer prices.

Worldcoin's performance has been particularly notable. In September, AI cryptocurrencies outperformed the broader market, growing by 54% compared to the overall crypto market's 24% increase. WLD itself rose by 44.28% in a month to reach $0.57155, though it fell by 1.74% in a single day. Despite recent gains, WLD remains about 95% below its all-time high of $11.74, recorded in March 2024.

The future of AI tokens in South Korea hinges on several factors, including potential tax changes and shifting investor interests. South Korea plans to introduce a 22% tax on cryptocurrency profits starting in January 2027, which could impact demand. Additionally, the rapid shift in trader preferences, with leaders like VIRTUAL and KAITO yielding to WLD and SAHARA, adds uncertainty to the sector's outlook.