In a notable shift within the Latin American cryptocurrency market, the USDT stablecoin has overtaken Bitcoin in popularity, with over 40% of all crypto trades in the region involving USDT, according to data from blockchain analytics firm Kaiko. This trend highlights a declining interest in Bitcoin, which now trails behind XRP in the region’s top trading pairs.
Dominance of Stablecoins in Latin America
Kaiko’s data shows that stablecoin-to-fiat trading pairs make up more than 60% of the top 10 trade volumes in Latin America. Tether’s USDT, in particular, has become a favored asset among Latin American traders, surpassing Bitcoin’s trade volume significantly. This rising dominance of stablecoins has led local central banks to increasingly consider the issuance of central bank digital currencies (CBDCs), although their ability to compete effectively with established stablecoins remains uncertain.
XRP Overtakes Bitcoin in Trading Volume
In an unexpected development, Bitcoin now lags behind XRP in the Latin American market. The XRP/MXN trading pair has outperformed BTC/BRL 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, which has bolstered its trading volume in the region.
Binance’s Market Position and the Brazilian Crypto Market’s Growth
Despite these market shifts, Binance remains a dominant player in terms of overall turnover, especially in stablecoin trades. However, Kaiko notes that Binance’s market dominance is showing signs of decline. The Brazilian crypto market, in particular, has seen rapid growth, with monthly BRL trade volumes averaging $1.3 billion in 2024, up from $0.7 billion in 2023. This growth has been driven by increased activity on Mercado Bitcoin, Brazil’s largest crypto exchange, where trade volumes have more than doubled, reflecting heightened interest in both Bitcoin and altcoins.
In summary, the preference for stablecoins, particularly USDT, over Bitcoin among Latin American traders is reshaping the regional crypto market. The rise of XRP and the dynamic shifts in exchange dominance indicate a rapidly evolving landscape, influenced by strategic partnerships and growing local market engagement.
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