Brazil’s stablecoin markets is growing explosively, and it has significantly more transactions than Bitcoin on the local exchanges.
The surge in stablecoins is a result of the increasing demand for US dollars as a stable currency for B2B payments across borders. This trend was driven by the desire to have dependable exposure to US Dollars despite local currency fluctuations.
According to blockchain analytics firm Chainalysis, Latin America has emerged as the second-fastest-growing region for stablecoin adoption, boasting a year-over-year growth rate exceeding 42%.
Brazil will receive nearly $90.3 Billion in cryptocurrency between July 2023 to June 2024. Stablecoins are the most popular choice for local traders as Bitcoin remains a strong currency.
Chainalysis has reported an astounding 207.7% rise in the value of stablecoin transactions on Brazilian exchanges. This is far greater than other crypto currencies, such as Ethereum.
The firm says that despite ongoing challenges, such as the declining Brazilian real or slow economic growth, there are “opportunities” for expansion of crypto assets. This is especially true as regulators take a more lenient stance towards digital assets.
Stablecoins will likely play an important role in Brazil’s dynamic crypto-environment, as the continued growth of exchanges such as OKX and Coinbase indicates.
Stablecoin demand is growing in other countries as well.
Stablecoins account for 43% of all transactions in Sub-Saharan Africa. This shows their significance in this region’s crypto-economy.
Ethiopia has seen a 180% increase in stablecoins transfers to retail customers, year over year, largely due to a devaluation by 30% of its local currency, birr.
Latin American Cryptocurrency Trends
Latin America, which received nearly $415 billion in cryptocurrency between July 2023 to June 2024 and barely surpassed Eastern Asia, accounted for almost 9.1% of all global cryptocurrency transactions.
The Latin American market is dominated by the Centralized Exchanges (CEXs), with a usage rate of 68.7%, driven primarily by professional and institutional investors who make transactions exceeding $10,000.
This region has experienced rapid growth with an increase in the year over the previous one of 42.5%.
Argentina is the leader in this region, with an estimated value of cryptocurrency received of $91,1 billion. Brazil comes second at $90.3 milliards.
Four Latin American nations, namely Brazil (9), Mexico (13) and Venezuela (14), are ranked in the Top 20 of the Global Adoption Index.
Brazil’s institutional crypto activity has resurged, with monthly transactions exceeding $1 million increasing by 29.2% between the second and third quarters of the year 2023 until the first quarter 2024.
The evolving crypto regulations, and maturing of the market are credited with this renewed interest.
In the region stablecoins have gained traction, especially in Argentina and Brazil where stablecoin transactions represent 61.8% and 59% of all transaction volume, respectively.
Argentinians are increasingly turning to USD-pegged Stablecoins in order to combat hyperinflation, devaluation and other effects.
Venezuela’s crypto market is experiencing similar growth, with an increase of 110% year over year, driven primarily by the fall of the bolivar, and the growing interest for DeFi (decentralized finance) solutions.
Cryptocurrency remains an important tool to maintain financial independence for its citizens despite the political and economic difficulties of their country.
The post Brazil’s stablecoin boom in 2024: Transaction volumes surpass Bitcoin could be updated as new information becomes available.
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