Retail traders in South Korea are piling into XRP and dogecoin (DOGE) in a sign of returning risk-on sentiment among speculative traders.

Trading volumes of the two tokens on local exchanges crossed bitcoin (BTC) and ether (ETH) in the past 24 hours.

The surge comes amid renewed risk-on sentiment across crypto and equity markets as U.S.-China trade tensions ease and macro indicators point to possible rate cuts later this year, some traders say.

Both XRP and DOGE have climbed more than 15% over the past week, outpacing bitcoin’s 10% move, while ETH has soared nearly 40%, marking its biggest weekly gain since 2021.

“Risk assets have recovered sharply to levels that are now challenging even the most ardent bears,” said Augustine Fan, head of insights at crypto options platform SignalPlus. “We believe the pain trade remains to be higher prices until more macro bears throw in the towel.”

UpBit, the biggest by trading volumes in Korea shows 24-hour volumes on XRP/KRW and DOGE/KRW exceeded $250 million, while those for bitcoin and ether remain under $150 million.

The pattern mirrors previous euphoric retail phases in Korea’s crypto market, often dubbed the “Kimchi premium” era, where local investors aggressively chased high-volatility assets.

Korean crypto markets have long served as a bellwether for retail sentiment.

The move also coincides with a broader market rally fueled by a massive $1 billion short squeeze last week as overleveraged positions were forcibly closed amid surging prices.

“We subscribe to the view that this was a classic market short-squeeze against an exceptionally one-sided market,” Fan added. “There’s no evidence of significant ETH ETF inflows, suggesting this was purely a native positioning event.”

The enthusiasm in Korea also reflects improving geopolitical sentiment. U.S. and Chinese officials on Monday said they would heavily cut tariffs on some goods to 30% from 145% for 90 days, following weeks of speculation on what the two superpowers would do.

“Investors are less apprehensive about crypto as U.S.-China trade talks find resolution and rate cuts appear more likely,” said Jeff Mei, COO of BTSE. “If the Fed signals a dovish pivot next month, it could push bitcoin past all-time highs and re-ignite lending and investment in the U.S. economy.”

While traders continue to watch for follow-through on institutional ETF flows and upcoming central bank guidance in June, the short-term momentum suggests that altcoin speculation is leading the current leg higher.