Brazil Witnesses 30% Surge in Crypto Trading Volumes in 2024; Stablecoins Gain Popularity
Summary:
Cryptocurrency transactions in Brazil have surged by 30% in the first months of 2024, with a trade volume of $6 billion, as per Kaiko Research. Stablecoins are gaining popularity over Bitcoin and other cryptocurrencies, accounting for nearly half of all trades. There are now 13 spot Bitcoin exchange-traded funds (ETFs) in the Brazilian market, with Bitcoin and Ethereum making up 43% of the Brazilian real's trade volumes. While Binance currently holds the largest market share at 79%, local exchange Mercado Bitcoin and Mexico's Bitso are increasing their market share.
Cryptocurrency transaction volumes in Brazil have experienced a significant surge in the initial months of 2024. Kaiko Research data indicates that crypto trading's momentum in the nation has grown by 30% compared to last year's numbers. Between January and early May 2024, the Brazilian real's crypto trading volume hit $6 billion, a 30% hike from a year ago. In 2024, Brazil stands out as the largest market in Latin America and ranks seventh globally in fiat currency trade, as reported by Kaiko.
In Mexico, the crypto trade volume has reached $3.7 billion in the first four months of 2024, while in Argentina, it rests around $300 million. Kaiko's report notes that the Brazilian real's trading volumes have consistently risen by 30% despite market adjustments and have outpaced the United States dollar trading volumes since the end of January.
In recent trends, Stablecoins are gaining popularity over Bitcoin and other cryptocurrencies in Brazil. Kaiko data reveals that almost half of all 2024 transactions involve stablecoins, with the market share of Tether (USDT) increasing by about 20% since the 2021 bullish market season.
On the other hand, B3, a chief infrastructure provider for the financial market in Brazil, reports that the country's cryptocurrency market now hosts 13 spot Bitcoin exchange-traded funds (ETFs), with popular funds from Hashdex and BlackRock. As of March, Bitcoin ETFs have been managed in the country since 2021, holding about 2.5 billion reals or nearly $500 million.
Bitcoin and Ethereum together accounted for 43% of the Brazilian real's trade volumes. In comparison, these two cryptocurrencies make up over 70% of USD-denominated volumes. Presently, Binance possesses the most substantial market share in Brazil, accounting for 79% of all transactions. However, its dominance has been decreasing. Meanwhile, the market share of Mercado Bitcoin, Brazil's largest exchange platform, and Bitso, located in Mexico, has risen to 21% by early May, hitting a three-year high, according to Kaiko.
Published At
5/13/2024 11:55:56 PM
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