Monthly cryptocurrency trading volumes in Latin America have surpassed $3 billion. The primary drivers of this growth are high inflation and limited access to banking services.
Increase in Crypto Trading Volume
Cryptocurrency trading volumes in Latin America surpassed $3 billion this year, according to market analysis firm Kaiko Research. Their data indicates that average monthly volumes reached $2.6 billion in 2024 before exceeding $3 billion recently.
Two main factors drive this activity. First, high inflation erodes trust in national currencies. Argentina, for instance, experienced inflation exceeding 220% in 2024, while Venezuela previously faced inflation hitting 65,000% in 2018. People in these economies increasingly turn to cryptocurrencies, viewing them as a more stable store of value compared to weakening local money.
Key Cryptocurrencies in the Market
Bitcoin remains the most traded digital asset in the region, accounting for a quarter of all transaction volume. The stablecoin USDT follows closely behind, with significant demand seen in Brazil. Trading between USDT and the Brazilian Real reached $5.9 billion. Overall, stablecoins like USDT made up 39% of all crypto assets acquired in Latin America. Their value tied to the US dollar builds user trust.
Countries leading adoption include Mexico, Brazil, Argentina, and Colombia, with usage varying. Mexico employs Bitcoin and stablecoins for payments and investment, while Brazil shows overall strong growth. Argentina and Colombia primarily use crypto to guard against inflation.
Platforms and Access to Cryptocurrencies
Platforms such as Bitso and Mercado Bitcoin support this growth by offering services using local currencies. These exchanges also simplify the conversion of stablecoins like USDT into traditional money.
Furthermore, the large remittance market in Latin America utilizes Bitcoin and USDT for faster transfers and lower fees compared to traditional methods. Over 100 businesses now contribute to expanding access to stablecoins across the region.
In conclusion, the growth of crypto trading in Latin America is driven by economic challenges and limited access to traditional financial services, with cryptocurrencies becoming an important tool for people in the region.
