A recent market report by Kaiko, a leading cryptocurrency market data analytics firm, highlighted a notable trend in Latin American (Latam) crypto trading. According to the report, crypto traders in Latam show a strong preference for stablecoins, especially Tether's USDT, which accounts for 40% of the region's trading volumes. This inclination towards stablecoins persists despite the advantages of Bitcoin as a hedge against currency devaluation, a common concern in many Latam nations.

The study conducted by Kaiko examined data from seven major cryptocurrency exchanges offering trading pairs involving Latam currencies, such as Kucoin, Binance, Mercado Bitcoin, Bitso, Htx, Okx, and Bitfinex. The analysis demonstrated a significant uptick in the adoption of stablecoins starting from 2021.

Particularly noteworthy is the high usage of stablecoins in Brazil, where nearly half of the trades involving the Brazilian real involve these digital assets. This surge in stablecoin usage in Brazil is primarily fueled by the volatility of the Brazilian currency and the prevalent high inflation rates in the region.