The usage of stablecoins in Latin America is on the rise as an increasing number of users are opting for USDC and USDT for financial security, according to a recent report from a cryptocurrency exchange.
In 2024, USDC and USDT have emerged as a “store of value” within the region, comprising 39% of all transactions on the exchange, as noted in the third edition of a report on the Latin America Crypto Landscape released on March 12.
This report highlighted a significant uptick in stablecoin usage on the platform, with total stablecoin purchases rising by 9% compared to 2023.
“In Latin America, difficult macroeconomic factors, including soaring inflation and currency depreciation, have led to a greater reliance on cryptocurrencies — particularly stablecoins — as a dependable store of value,” the report explains.
USDC Takes the Lead, Bitcoin Sees Decline
While stablecoin purchases soared, Bitcoin experienced a marked drop in trading volume on the platform in 2024, with its share plummeting to 22% from 38% in the latter half of 2023.
The decline in Bitcoin acquisitions in the region reflects an emerging trend towards the hodl strategy, which involves buying and holding the cryptocurrency in anticipation of long-term gains.
This decrease in Bitcoin purchases coincided with a bullish market in 2024, with Bitcoin surpassing $100,000 for the first time in December.
Top 10 purchased crypto assets on the exchange in 2024.
With users on the platform holding back on Bitcoin purchases in 2024, their buying activity shifted towards stablecoins like USDC and USDT, with USDC leading at 24% of total transactions.
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USDT purchases made up 15% of the total cryptocurrencies acquired on the platform in 2024.
Argentina Dominates USDt Market with 50% Share
A closer look at regional preferences among countries in Latin America reveals a significant trend in USDT usage in Argentina, fueled by inflation rates exceeding 100%.
In 2024, users in Argentina showed a strong preference for USDT and USDC, comprising 50% and 22% of all cryptocurrency purchases in the country, respectively.
Top 10 purchased crypto assets in Argentina, Brazil, Colombia, and Mexico.
Conversely, Bitcoin’s share of purchases in Argentina was only 8% last year, marking it the lowest among the countries analyzed.
In contrast, users in Brazil and Mexico continued to prioritize Bitcoin as their top cryptocurrency purchase, accounting for 22% and 25% of their transactions, respectively.
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