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Brazil stands out as a leader in cryptocurrency trading in Latin America. Since the beginning of 2024, the country has witnessed a notable growth in trading volume, revealing a 30% expansion compared to the previous year. This rise places Brazil at the center of economic attention in the region.

According to data from Kaiko Research, the volume of trading in cryptocurrencies denominated in reais reached the US$6 billion mark in the first months of this year. This number not only represents a significant increase compared to the previous period, but also solidifies the country’s position as the largest cryptocurrency market in Latin America.

Furthermore, the data also places Brazil as the seventh largest in the world in terms of fiat currency.

Brazil leads in diversity of traded assets

Through a study of commercial activity, it is observed that Brazil leads not only in volume, but also in diversity of assets traded. While in the first four months of 2024 the volume traded in Mexican pesos totaled US$3.7 billion, and in Argentine pesos around US$300 million, the Brazilian market stands out with more than US$6 billion.

One particularly notable trend is the growing interest in stablecoins at the expense of Bitcoin and other traditional cryptocurrencies. According to Kaiko, almost half of all transactions carried out in 2024 involved stablecoins, with Tether (USDT) capturing a market share that has grown by around 20% since the last bull market in 2021.

ETFs also conquer the scene

The emergence and expansion of Bitcoin Exchange-Traded Funds (ETFs) in the Brazilian market is also worth highlighting. With 13 exchange-traded funds currently available, including popular options from Hashdex and BlackRock, Brazil’s cryptocurrency market is witnessing a significant expansion of its financial infrastructure.

Since their introduction in 2021, these ETFs have accumulated a managed volume of around 2.5 billion reais (around US$500 million) by March 2024, indicating growing acceptance and confidence among local investors.

Another point of interest is the competitive dynamics between trading platforms. Binance currently holds the largest market share, accounting for 79% of transactions. However, its dominance is gradually being challenged by other emerging platforms such as Brazil’s Mercado Bitcoin and Mexico’s Bitso.

Together, the latter two saw their combined market share increase to 21% in early May 2024, reaching its highest level in more than three years.

Despite the recent correction in the cryptocurrency market, indicators suggest remarkable resilience. Trading volumes in Brazilian reais remain 30% above the previous year, highlighting the continued confidence and interest of local investors in the sector. This positive outlook places Brazil at the epicenter of discussions about the future of digital finance in Latin America and beyond.

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