Latin America has emerged as the fifth-largest region for cryptocurrency activity, accounting for 9.1% of global cryptocurrency value between July 2023 and June 2024, according to a new report from Chainalysis. During this period, the region received nearly $415 billion in cryptocurrency, positioning it just ahead of Eastern Asia. The report highlights the continued reliance on centralised exchanges (CEXs) across Latin America, with 68.7% of users opting for these services, slightly trailing behind North American usage.
The rise in cryptocurrency activity in Latin America is largely driven by institutional and professional investors, and the region ranks as the second-fastest growing market, with an annual growth rate of 42.5%. Argentina leads the charge with $91.1 billion in cryptocurrency value received, narrowly surpassing Brazil’s $90.3 billion. Four Latin American countries—Brazil, Mexico, Venezuela, and Argentina—rank among the top 20 in the Global Adoption Index, with stablecoin-based remittances growing in popularity across the region.
Brazil’s institutional crypto activity has seen a significant rebound after a dip in early 2023, likely due to the global bear market. Since mid-2023, institutional-sized transactions, those over $1 million, have surged by 29.2% between the last two quarters of 2023, and by 48.4% from Q4 2023 to Q1 2024. Experts attribute this to portfolio diversification strategies and the introduction of Bitcoin and Ethereum ETFs, which have attracted the interest of major financial entities.
In Argentina, where economic challenges continue to drive inflation and devaluation of the Argentine peso, stablecoins are becoming a popular hedge. Data shows a sharp rise in stablecoin transactions on local exchanges as citizens seek to protect their savings. This trend underscores how cryptocurrency, particularly stablecoins, is playing a vital role in providing financial stability in times of economic volatility.
Venezuela, despite political uncertainty under the Maduro regime, remains one of Latin America’s fastest-growing crypto markets, with year-on-year growth of 110%. Venezuelans continue to turn to cryptocurrency to mitigate the effects of the country’s ongoing economic crisis. Additionally, decentralised finance (DeFi) is gaining traction in the country, suggesting that despite centralised services dominating the market, the shift toward DeFi is an emerging trend to watch.
The Caribbean is also witnessing a resurgence in crypto activity after the collapse of FTX. The region has seen a renewed interest in mainstream centralised exchanges such as Coinbase and Binance, particularly in jurisdictions like the Cayman Islands, where projects related to blockchain and Web3 have gained traction. As the industry adapts to past challenges, the Caribbean appears poised to solidify its position as a key hub for cryptocurrency adoption in the coming years.