Key Points
- The USDT stablecoin is leading in crypto trades in Latin America, signaling a decline in Bitcoin interest.
- Binance’s dominance in the region seems to be decreasing, with Brazil’s Mercado Bitcoin seeing increased trade volumes.
Over 40% of all cryptocurrency trades in Latin America involve the USDT stablecoin, indicating a decrease in Bitcoin’s popularity. Even XRP, a token developed by Ripple, is surpassing Bitcoin in the region’s most traded pairs.
Stablecoins’ Growing Dominance
Stablecoin-to-fiat trading pairs account for more than 60% of the top 10 trade volume in Latin America, surpassing Bitcoin, according to data from a blockchain analytics firm. The USDT, issued by Tether, accounts for over 40% of all trades, highlighting its popularity among Latin American traders.
This rise in stablecoins’ dominance has led local central banks to consider issuing central bank digital currencies (CBDCs). However, it’s unclear if they can effectively compete.
Bitcoin’s Declining Popularity
In a surprising turn of events, Bitcoin is even trailing behind XRP in Latin America. Data shows that the XRP/MXN trading pair has outperformed the BTC/BRL pair by at least a billion dollars in turnover. This surge in XRP’s popularity is largely attributed to its partnership with the Bitso crypto exchange.
Despite these changes, Binance continues to lead the market in terms of turnover, especially in stablecoin trades. The Brazilian crypto market is rapidly expanding, with monthly BRL trade volumes averaging $1.3 billion, a significant increase from $0.7 billion in 2023.
However, Binance’s dominance seems to be lessening in the region. Trade volumes on Mercado Bitcoin, Brazil’s largest crypto exchange, more than doubled in 2024, driven by activity in both Bitcoin and altcoins.
