Stablecoins Surpass Bitcoin in Latin America: USDT Dominates Crypto Market

  • Stablecoins have eclipsed Bitcoin in popularity among Latin American crypto users.
  • Kaiko’s recent report reveals that stablecoins account for 63% of crypto volumes on the region’s top exchanges.
  • The rapid adoption of stablecoins in Latin America began around 2021, driven by economic instability.

Discover why stablecoins are now leading the charge in Latin America’s crypto market, overshadowing Bitcoin in trading volumes.

Stablecoins Surpass Bitcoin in Latin American Crypto Exchanges

A recent report by Kaiko, a prominent research firm, has disclosed that stablecoins have surpassed Bitcoin in popularity among crypto traders in Latin America. This development, noticeable across seven of the major cryptocurrency exchanges in the region, points to a significant shift towards stable digital assets.

The Predominance of Stablecoin Transactions

According to Kaiko’s findings, 63% of the top ten trading volumes on these exchanges are attributed to stablecoin-to-fiat pairs. Notably, Binance, which commands nearly half of Latin America’s crypto transactions, has seen a clear preference for stablecoin dealings among its users. Kaiko’s data shows that stablecoins are among the most traded assets on three of the leading platforms, highlighting their emerging dominance.

Insight Into Stablecoin Surge Since 2021

The initial surge in stablecoin usage in Latin America dates back to 2021. Kaiko identifies economic uncertainties, such as Brazil’s inflation and economic volatility, as key factors driving this trend. Presently, almost half of Brazil’s crypto trades involve stablecoins, underscoring their role as a popular alternative to traditional financial systems amidst economic turmoil.

Impact on Central Bank Digital Currencies (CBDCs)

The growing prominence of stablecoins has caught the attention of Central Banks across the region. In response, these institutions are considering the launch of Central Bank Digital Currencies (CBDCs) as potential competitors to decentralized stablecoins. Nonetheless, there remains skepticism regarding CBDCs’ effectiveness and competitiveness against well-established stablecoins like Tether (USDT).

Comparison with Bitcoin Trading Volumes

In contrast, Kaiko’s report highlights that Bitcoin’s trade volumes only exceeded those of stablecoins on the Mercado Bitcoin exchange, which handles around 10% of the entire region’s trade volume. Despite Bitcoin’s reputation as a hedge against inflation, it’s clear that stablecoins continue to be the preferred choice for many Latin American traders.

Conclusion

In conclusion, the analysis from Kaiko underscores the significant shift towards stablecoins among Latin American crypto users, driven by economic instability and pragmatic trading preferences. As Central Banks weigh the introduction of CBDCs, it remains to be seen how these will fare against established decentralized assets. Traders and financial authorities alike will continue to monitor these developments closely, anticipating further shifts in the region’s dynamic crypto landscape.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Hillary Clinton Eyed as Potential Successor Should Joe Biden Exit Presidential Race

As discussions circulate about President...

FLOKI Price Surge Predicted: Bullish Pattern and 60% Gain Potential

FLOKI token demonstrates a promising short-term bullish...

Citigroup Leads with $2.28 Billion in Losses Amid Rising Consumer Debt in Q2 2024

Major US banks are currently facing substantial...

Wells Fargo Executive Banned from Banking for $47k Misappropriation Scheme

A Wells Fargo executive has been forced...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Dogecoin Leads the Pack: 2024’s Top Dog-Themed Meme Coin Performance Analysis

In 2024, dog-themed meme coins such as...

XRP Price Analysis: Whale Transactions and Technical Outlook Hint at Bullish Potential

XRP, the cryptocurrency developed by Ripple, has...

Bitcoin Market Analysis: BTC and Altcoins See Significant Declines (July 19)

Amid recent market turbulence, Bitcoin and other...

XRP Price Analysis: Key Support Holds at $0.54 Amid Pullback

Cryptocurrency XRP has recently surged by...
Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
spot_imgspot_imgspot_imgspot_img

Hillary Clinton Eyed as Potential Successor Should Joe Biden Exit Presidential Race

As discussions circulate about President Joe Biden potentially stepping down from the electoral race, speculation abounds regarding his potential successor. ...

FLOKI Price Surge Predicted: Bullish Pattern and 60% Gain Potential

FLOKI token demonstrates a promising short-term bullish trend as it surpasses its June resistance level. On-chain metrics indicate a favorable long-term...

Citigroup Leads with $2.28 Billion in Losses Amid Rising Consumer Debt in Q2 2024

Major US banks are currently facing substantial financial losses due to an increasing amount of unpaid debts. Citigroup, Bank of America,...