Chainalysis Latam Report Highlights Major Crypto Growth Milestone in Surprising Nation

A Chainalysis report reveals that Argentina surpassed Brazil in cryptocurrency value received during the period examined, highlighting the high adoption of stablecoins in Latin America. However, Venezuela was the market that grew the most, rising by 110% despite the current political and economic turmoil the nation is facing.

Chainalisis Latam Report: Argentina Beats Brazil, Venezuela’s Crypto Market Explodes

Chainalysis has released its 2024 Geography of Cryptocurrency Report, disclosing several insights about the state of crypto in Latin America. The company highlighted the relevance of stablecoins, tokens pegged to the value of the U.S. dollar, as one of the most relevant crypto asset classes, mostly in Argentina, Venezuela, and Brazilian local exchanges.

While Brazil maintains its status as one of the largest crypto economies, having received $90.3 billion in cryptocurrency value from July 2023 to June 2024, Argentina took the lead, receiving an estimate of $91.1 during the same period. This is very relevant because Brazil has a gross domestic product of nearly $2.2 trillion, one of the top ten economies in the world, dwarfing Argentine economic numbers.

The organization explains that the inflationary environment Argentines have been living in since some time ago has powered stablecoin adoption, as several other reports have evidenced. Brazil also trails Argentina in this regard, with a stablecoin transactional share of 59.8% for the former and 61.8% for the latter.

Nonetheless, neither Argentina nor Brazil managed to equal Venezuela, which registered a 110% growth of the cryptocurrency value received, even with all the political and economic circumstances surrounding the country. Venezuelans often take refuge in stablecoins and crypto to avoid devaluation, which might explain this exponential growth.

The report states:

It appears that Venezuelans are drawn to cryptocurrency to combat the plummeting value of the Venezuelan bolívar (VES). As we see below, there is a strong inverse relationship between the VES price in USD and monthly crypto value received.

The report concludes that decentralized finance operations are growing even when centralized exchanges are the more popular choice in the country. However, this might change if the government explicitly supports these initiatives.

What do you think about Chainalysis’ insights about the state of Latam in crypto? Tell us in the comments section below. #Write2Earn