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According to CoinWire, the cryptocurrency market in Latin America is experiencing dramatic growth. The volume of transactions is expected to reach $7.8 billion in 2024, up from $2.3 billion in 2022 and $3 billion in 2023. This significant increase reflects the growing adoption of cryptocurrencies in the region, especially in inflation-hit countries such as Venezuela and Argentina.
Cryptocurrencies as an economic alternative
Cryptocurrencies have emerged as a crucial alternative for Latin American citizens, offering a form of protection for their assets in the face of devaluation of local currencies and galloping inflation. CoinWire’s communication indicates that this increase in cryptocurrency volume is a reflection of your growing adoption in the current economic context.
Study methodology
The information provided by CoinWire is based on the analysis of centralized cryptocurrency exchanges, using data from CoinGecko to calculate the volume of transactions. Key factors such as country web traffic, supported languages, location, and trading hours are taken into account to estimate the trading volume on each exchange.
Growth of cryptocurrency trading in Latin America
In Latin America, cryptocurrency trading has increased significantly, growing by 3.42% over the past three years. Forecasts indicate that the volume of transactions will reach $7,800 million in 2024, a significant increase from $2,300 million in 2022 and $3,000 million in 2023. This accelerated increase reflects a global trend towards a mayor’s participation in the cryptocurrency market.
Brazil has become the leader in cryptocurrency trading in Latin America, with a trading volume expected to exceed $354 billion in 2024, according to CoinWire. This significant increase is due to Brazil’s dominant influence in the regional crypto market.
Change in cryptocurrency preferences
In Latin America, interest in Bitcoin (BTC) has declined amid a significant increase in stablecoin trading, according to Kaiko data. This reflects a trend toward more stable and less volatile cryptocurrencies in the region, indicating a shift in local inverse preferences.
By 2024, more than 40% of all cryptocurrency transactions in Latin America will be in the USDT stablecoin, according to a recent study. This data is found in Bitcoin in second place, followed by Ether (ETH).
Stablecoins: Inflation-Front Preference
Stablecoins have become the most widely used cryptocurrency for trading in Latin America, according to a recent analysis by Kaiko. Since early 2021, this trend has been driven by high regional inflation. Stablecoins, pegged to the dollar, are preferred by traders for making transactions, representing 63% of total transaction volume in the last six months.
This trade includes local currencies such as the Mexican peso (MXN), Colombian peso (COP), Argentine peso (ARS), and Brazilian real (BRL). In particular, the use of the Brazilian real and Mexican peso has been significant in these transactions.
Future perspectives
Despite the growing popularity of stablecoins, Bitcoin continues to see itself as a haven of value for citizens in precarious economic situations. Kaiko analysts point to the global confidence in Bitcoin, particularly the approval of the ETF in the United States, a factor that has contributed to the revaluation of local currencies in Latin America and has stimulated the growth of stablecoins in the region.
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