Cryptocurrency Adoption Surges in Latin America, Led by Argentina and Brazil: Chainalysis Report

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As a seasoned crypto investor with roots in Latin America, I find it particularly exhilarating to see my region take the fifth spot globally in cryptocurrency activity. Having witnessed the economic struggles of countries like Venezuela and Argentina firsthand, I can attest to the growing demand for stable alternatives that cryptocurrencies offer.

As a cryptocurrency investor, I was intrigued to learn from Chainalysis’s October 2024 blog post and their 2024 Geography of Cryptocurrency Report that Latin America emerged as the fifth-largest region in crypto activity, accounting for 9.1% of the total value received between July 2023 and June 2024, surpassing Eastern Asia with a staggering $415 billion in transactions. Interestingly, centralized exchanges (CEXs) are the preferred choice among users in Latin America, constituting 68.7% of the market—a figure only slightly behind North America, demonstrating a strong interest and growth in crypto adoption within this region.

It’s been observed by Chainalysis that large-scale investors (those who trade over $10,000 at a time) are the primary contributors to cryptocurrency transaction values in the specified region. The report further highlights Latin America as the second most rapidly expanding cryptocurrency sector globally, experiencing an approximately 42.5% year-on-year growth. This rapid expansion is believed to be primarily fueled by thriving crypto markets in countries such as Venezuela, Argentina, and Brazil, according to Chainalysis.

As far as cryptocurrency worth goes, Chainalysis has found that Argentina tops the regional chart with a staggering $91.1 billion, just barely ahead of Brazil with $90.3 billion. The Global Adoption Index from this report indicates that four Latin American countries are among the top 20 worldwide: Brazil ranks 9th, Mexico is 13th, Venezuela comes in at 14th, and Argentina holds the 15th position. Chainalysis notes an increasing trend of stablecoin-based remittances across the region, which seems to mirror the growing need for reliable alternatives in countries grappling with economic difficulties.

The report also explored Brazil’s institutional crypto market, which has rebounded after a brief decline in early 2023. Chainalysis found that institutional-sized transactions in Brazil surged by 48.4% between Q4 2023 and Q1 2024. The resurgence, according to the report, is partly driven by the evolving regulatory landscape and the introduction of Bitcoin and Ethereum ETFs. Chainalysis further emphasized that institutional investors are increasingly viewing digital assets as valuable components of their portfolios.

In Venezuela, the use of cryptocurrencies is on the rise, bucking trends set by the unstable Maduro government. As per Chainalysis, the country’s crypto market experienced a remarkable 110% increase compared to the previous year, making it the leading nation in the region regarding this growth. Chainalysis suggests that Venezuelans are resorting to cryptocurrencies as a means of protecting their assets from the rapidly depreciating bolívar. Stablecoins have become an essential resource for those striving for financial stability in an otherwise volatile economic climate.

In recent times, there’s been a surge in cryptocurrency transactions within the Caribbean, according to Chainalysis. Following a dip after the fall of FTX, the region has seen a rapid increase in crypto usage. Notable exchanges such as Coinbase and Binance have reported heightened activity. As a result, Chainalysis predicts that the Caribbean could become a significant center for cryptocurrency activity due to its embrace of blockchain and Web3 technologies.

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2024-10-12 12:03