Brazil experienced a significant surge in cryptocurrency trading, with a 30% increase over the previous year.
In the first few months of 2024, there has been a significant increase in the number of cryptocurrency trades in Brazil. Kaiko Research’s information indicates a 30% increase in cryptocurrency trading activity in the country over the previous year.
Brazil Dominates LATAM Crypto Trading
Between January and the beginning of May 2024, Brazilian reals denominated cryptocurrency trade reached $6 billion, a 30% increase from the previous year.
According to Kaiko, the country ranks as the sixth largest worldwide in terms of fiat money commerce and it is currently the largest market in Latin America.
During the first four months of 2024, the volume of cryptocurrency trade in the Mexican peso was roughly $3.7 billion, whereas the volume of cryptocurrency trading in the Argentine peso was approximately $300 million.
The research states that “despite the recent market correction, BRL trade volumes are still up 30% compared to last year.” It also states that since late January, BRL trade volumes have been expanding at a faster rate than United States dollar trade volumes.
In comparison to Bitcoin and other cryptocurrencies, stablecoins are gaining a growing amount of popularity in the country. According to Kaiko, stablecoins were involved in nearly half of all deals in 2024.
Tether’s market share has increased by nearly 20%.The Brazilian cryptocurrency market currently includes thirteen spot Bitcoin exchange-traded funds (ETFs), according to data provided by B3, a leading provider of financial market infrastructure in the nation.
These ETFs include prominent products from Hashdex and BlackRock. Bitcoin exchange-traded funds (ETFs) have been trading in the country since 2021, and as of March, they managed around 2.5 billion reals, which is equivalent to approximately $500 million.
“BTC and ETH accounted for a combined 43% of BRL trade volumes. For context, they make up more than 70% of USD-denominated volumes.”
However, despite the fact that its dominance has been decreasing, Binance continues to have the highest market share in Brazil, accounting for 79% of all transactions.
In contrast, the main Brazilian exchange, Mercado Bitcoin along with Bitso, which is based in Mexico have seen their combined market share increase to 21% by the beginning of May, reaching its highest point in over three years, according to Kaiko.