Brazil’s stablecoin surge in 2024: transaction volumes outpace Bitcoin

Brazil’s stablecoin market is experiencing explosive growth, significantly outpacing Bitcoin in transaction volume on local exchanges.

This surge reflects an increasing preference for stablecoins in B2B cross-border payments, driven by the need for stable US dollar exposure amid local currency fluctuations.

According to blockchain analytics firm Chainalysis, Latin America has emerged as the second-fastest-growing region for stablecoin adoption, boasting a year-over-year growth rate exceeding 42%.

Between July 2023 and June 2024, Brazil received nearly $90.3 billion in cryptocurrency, with stablecoins becoming the preferred choice among local traders, particularly as Bitcoin popularity remains strong.

Chainalysis reported a staggering 207.7% increase in stablecoin transaction values on Brazilian exchanges, far surpassing other cryptocurrencies, including Ethereum.

Despite ongoing economic challenges such as a declining Brazilian real and slow growth, the firm identifies “opportunities for crypto expansion,” especially as regulators adopt a more open stance toward digital assets.

The continued expansion of exchanges like OKX and Coinbase in Brazil indicates that stablecoins are likely to play a pivotal role in the country’s dynamic crypto environment.

The growing demand for stablecoins is not limited to Brazil; other regions are also seeing a significant increase.

Recent reports highlighted that stablecoins constitute about 43% of total transaction volumes in Sub-Saharan Africa, reflecting their importance in the region’s crypto economy.

Ethiopia, in particular, has witnessed a remarkable 180% growth in retail-sized stablecoin transfers year-over-year, spurred by a 30% devaluation of the local currency, the birr.

Cryptocurrency trends in Latin America

Between July 2023 and June 2024, Latin America accounted for 9.1% of global cryptocurrency transactions, receiving nearly $415 billion, slightly surpassing Eastern Asia.

Centralized exchanges (CEXs) remain the most favored platform among Latin American users, with a 68.7% usage rate, primarily driven by institutional and professional investors making transactions over $10,000.

The region is witnessing rapid growth, boasting a year-over-year increase of approximately 42.5%.

Argentina leads the region with an estimated cryptocurrency value received at $91.1 billion, closely followed by Brazil at $90.3 billion.

Notably, four Latin American countries—Brazil (9), Mexico (13), Venezuela (14), and Argentina (15)—are ranked among the top 20 in the Global Adoption Index.

Brazil has shown a resurgence in institutional crypto activity, increasing monthly transactions greater than $1 million by about 29.2% from the last two quarters of 2023 to the first quarter of 2024.

This renewed interest is attributed to evolving regulations and the maturation of the crypto market.

Stablecoins are gaining traction in the region, particularly in Argentina and Brazil, where stablecoin transactions account for 61.8% and 59.8% of total transaction volumes, respectively.

Argentinians increasingly turn to USD-pegged stablecoins to mitigate the effects of hyperinflation and the devaluation of their local currency.

Venezuela is also experiencing significant growth in its crypto market, with a year-over-year increase of 110%, largely driven by the depreciation of the bolívar and a growing interest in decentralized finance (DeFi) solutions.

Despite the country’s political and economic challenges, cryptocurrency remains a vital tool for financial independence among its citizens.

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