Brazil Crypto Trading Surges: Stablecoins Gain Traction


In the first months of 2024, Brazil has witnessed a significant surge in crypto trading volumes, according to data from Kaiko Research. The country’s crypto trading activity has experienced a notable increase of 30% year-over-year.

Between January and early May 2024, the trading volume denominated in Brazilian real (BRL) reached a staggering $6 billion, marking a significant rise from the previous year. 

As reported earlier by TheCoinRise, Brazil officially signed into law a bill aimed at taxing overseas cryptocurrency transactions.

Brazil is the Largest Market in LATAM

This surge has positioned Brazil as the largest market in Latin America and the seventh-largest worldwide in terms of fiat currency trade. Despite recent market corrections, BRL trade volumes have maintained a steady increase, outpacing United States dollar trade volumes since late January. 

Growing Popularity of Stablecoins

The report highlights the growing popularity of stablecoins over Bitcoin and other cryptocurrencies in Brazil, with nearly half of all trades in 2024 involving stablecoins. Tether (USDT) has seen its market share rise by almost 20% since the 2021 bull market.

Brazil’s crypto market has also seen a rapid expansion in the availability of spot Bitcoin exchange-traded funds (ETFs). 

According to data from B3, the primary financial market infrastructure provider in Brazil, there are now 13 spot Bitcoin ETFs, including popular funds from Hashdex and BlackRock. These ETFs have been trading since 2021, managing approximately 2.5 billion reals (~$500 million) as of March.

BTC and ETH Account for 43% of Volumes

BTC and ETH together accounted for 43% of BRL trade volumes, indicating a strong presence in the crypto market in Brazil. This percentage is slightly lower compared to their dominance in USD-denominated volumes, where they make up over 70%.

Binance currently holds the largest market share in Brazil, accounting for 79% of transactions. However, the dominance of Binance has been gradually decreasing. 

Exchanges in Brazil Witness Significant Growth

On the other hand, the largest Brazilian exchange, Mercado Bitcoin, along with Mexico-based Bitso, has seen their combined market share rise to 21% by early May, reaching its highest point in over three years.

The surge in crypto trading volumes in Brazil reflects a growing interest in digital assets among investors in the country. The authorities are also working on a central bank digital currency (CBDC), as reported earlier. 

The increased adoption of stablecoins, coupled with the availability of Bitcoin ETFs and the rise of local exchanges, indicates a maturing crypto market in Brazil with promising growth prospects.

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