Bitcoin
Stablecoin USDT is more popular than Bitcoin in Latin America, says Kaiko
More than 40% of all cryptocurrency trades in Latin America involve the USDT stablecoin, signaling a dwindling interest in Bitcoin, which is even lagging behind XRP in the region’s main trading pairs.
Stable coins are most popular in Latin America (LATAM) what Bitcoin as stablecoin-fiat trading pairs accounted for more than 60% of the top 10 trading volume in the region, according to data compiled by Kaiko, a blockchain analytics firm.
The data reveals that USDTissued by Lashingis significantly more popular than Bitcoin among Latin American traders, representing more than 40% of all trades. Kaiko notes that this growing dominance of stablecoins has led local central banks to “increasingly consider” issuing central bank digital currencies (CBDCs), although “it remains uncertain whether they can compete effectively.”
Leading markets in LATAM in 2024 | Source: Kaiko
In a surprising development, in LATAM Bitcoin is even behind XRPa token developed by Curling. Data indicates that the XRP/MXN trading pair has surpassed BTC/BRL by at least a billion dollars in trading volume. However, Kaiko notes that XRP’s popularity in the region is mainly due to its partnership with Bitso crypto exchange.
Despite these changes, Binance continues to dominate the market in terms of trading volume, especially in stablecoin trading, according to Kaiko. The company also highlighted the rapid growth of the Brazilian crypto market, with monthly BRL trading volumes averaging US$1.3 billion, up from US$0.7 billion in 2023. However, Kaiko says the dominance of Binance appears to be slowing in the region as trading volumes on Mercado Bitcoin, Brazil’s largest cryptocurrency exchange, more than doubled in 2024, driven by activity in both Bitcoin and altcoins.