Stablecoin USDT more popular than Bitcoin in Latin America, Kaiko says

More than 40% of all crypto transactions in Latin America involve the USDT stablecoin, signaling a waning interest in Bitcoin; In fact, Bitcoin lags behind XRP in the region’s top trading pairs.

According to data compiled by blockchain analysis firm Kaiko, stablecoins are more popular than Bitcoin in Latin America (LATAM); stablecoin-fiat trading pairs account for more than 60% of the top 10 trading volume in the region.

Data reveals that USDT issued by Tether is much more popular than Bitcoin among Latin American investors, accounting for more than 40% of all transactions. Kaiko notes that the growing dominance of stablecoins has prompted local central banks to “increasingly consider” issuing central bank digital currencies (CBDCs), but “whether they can compete effectively remains unclear.”

LATAM’s leading markets in 2024 | Source: Kaiko

In a surprising development, in LATAM Bitcoin is even lagging behind XRP, a token developed by Ripple. Data shows that the XRP/MXN trading pair has surpassed BTC/BRL in terms of turnover by at least a billion dollars. However, Kaiko notes that XRP’s popularity in the region is mainly due to its partnership with the Bitso crypto exchange.

Despite these changes, Binance continues to dominate the market in terms of turnover, especially in stablecoin trading, according to Kaiko. The firm also highlighted the rapid growth of the Brazilian crypto market; monthly BRL trade volume increased from $0.7 billion in 2023 to an average of $1.3 billion. However, Kaiko says Binance’s dominance appears to be waning in the region due to trading volumes on Mercado Bitcoin. Brazil’s largest crypto exchange has more than doubled in 2024, driven by activity in both Bitcoin and altcoins.