According to a recent report by Cryptopolitan, XRP has solidified its position as the most favored altcoin among cryptocurrency investors in the Latin American (LATAM) region. Data from Bitso, a leading cryptocurrency exchange operating in the area, indicates that a significant 9% of all cryptocurrency trades on its platform in 2024 were attributed to the purchase of XRP. This figure surpasses the trading volumes for Ethereum (ETH) at 5% and Solana (SOL) at 4%, underscoring XRP's dominance as the preferred alternative to Bitcoin in the LATAM market.
Bitso, a prominent cryptocurrency financial services firm with a substantial user base of 9 million retail customers across four key Latin American countries – Argentina, Mexico, Colombia, and Brazil – conducted a comprehensive analysis of user buying and holding behaviors in 2024, comparing it with the trends observed in 2023. The findings of this report offer valuable insights into the evolving cryptocurrency landscape within the region.
One of the most striking revelations of the report is the relatively recent surge in interest surrounding XRP. The average proportion of XRP held within user cryptocurrency portfolios witnessed a remarkable increase from a negligible 0% in 2023 to a substantial 12% in 2024. This dramatic shift is largely attributed to a significant price rally experienced by XRP towards the end of 2023, which appears to have captured the attention and investment of LATAM crypto enthusiasts.
Ripple's Resurgence: Catalysts for Popularity
XRP had previously faced considerable headwinds, particularly following the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs in late 2020. However, the digital asset experienced a notable turnaround starting in late 2023, coinciding with the election of Donald Trump as the President of the United States. Following the election, XRP witnessed a dramatic price surge, climbing over 300% and reaching its highest levels in several years. While the price has since corrected to around $2, its performance in 2024 has been relatively robust, with a year-to-date decrease of only 10%.
This performance stands in stark contrast to the declines experienced by other major cryptocurrencies during the same period. Bitcoin (BTC) saw a decrease of approximately 9.56%, while Ethereum (ETH) and Solana (SOL) experienced more significant drops of 52% and 28%, respectively. This relative stability and positive momentum have likely contributed to XRP's growing appeal within the LATAM investment community.
Several factors beyond the U.S. election results may have contributed to XRP's resurgence in popularity within Latin America. The region has historically shown a greater openness to alternative financial solutions and cross-border payment systems, areas where XRP has positioned itself as a potentially disruptive force. Its focus on facilitating faster and cheaper international money transfers resonates with the needs of a region often characterized by significant remittance flows. Furthermore, increased regulatory clarity or positive legal developments related to Ripple's ongoing legal battle with the SEC, even if indirect, could have instilled greater confidence among investors.
Stablecoins and Bitcoin Maintain Dominant Portfolio Positions
Despite the burgeoning interest in XRP, stablecoins and Bitcoin (BTC) continue to form the bedrock of user cryptocurrency portfolios within the LATAM region. Bitso's data reveals that in 2024, Bitcoin held the largest share of the average portfolio at 49%. However, this represents a decrease from its 57% share in 2023, suggesting a gradual diversification of holdings into other asset classes, including meme coins, altcoins, and fiat-based tokens.
Interestingly, there has been a shift in the most frequently purchased cryptocurrencies on the Bitso platform. In 2023, Bitcoin led the pack with 28% of purchase volume. However, in 2024, Circle's USDC stablecoin emerged as the most bought cryptocurrency, accounting for 24% of all purchases. Tether's USDT followed closely behind at 15%. This trend underscores the growing importance of stablecoins within the LATAM crypto ecosystem, likely driven by their perceived stability in a volatile market and their utility in facilitating trading and remittances.
The report also highlights an increase in the holding of stablecoins and local fiat currencies. This can be attributed to several factors, including the attractive yield opportunities offered by some stablecoin platforms, the depreciation of local currencies in certain LATAM countries, and a broader trend among users to diversify their portfolios and realize profits by converting volatile assets into more stable forms.
Cryptocurrency Adoption Demonstrates Robust Growth Across LATAM
Bitso's report indicates a significant uptick in cryptocurrency adoption across the four Latin American countries where it operates. Argentina experienced an 11% increase in registered users, while Mexico saw an even more substantial growth of 13%. Brazil and Colombia also demonstrated healthy adoption rates, with a 6% increase in users each. These figures underscore the increasing integration of digital assets into the financial lives of individuals across the region.
Analyzing user demographics, the 25-34 age group constitutes the largest segment of cryptocurrency users, accounting for 38% of the total user base. This is followed by the 18-24 and 35-44 age brackets, each representing 23% of users. As age increases, the proportion of cryptocurrency users generally decreases, with individuals aged 65 and above making up the smallest segment at just 2%. This trend aligns with global patterns of technology adoption, where younger generations tend to be early adopters of new digital financial tools.
However, the report also notes an interesting trend of increasing trading activity among older demographics. The trading activity of users aged 45-54 increased from 13% to 14%, while those in the 55-64 age group saw their trading activity rise from 5% to 6%. This suggests a growing awareness and engagement with cryptocurrencies among older segments of the population, potentially driven by a desire to diversify investment portfolios or seek alternative avenues for wealth preservation.
In conclusion, Bitso's report provides compelling evidence of the growing prominence of XRP within the Latin American cryptocurrency market. While stablecoins and Bitcoin remain core portfolio assets, XRP's recent surge in popularity, fueled by market dynamics and potentially its utility in cross-border payments, positions it as a significant player in the region's evolving digital asset landscape. Furthermore, the increasing adoption of cryptocurrencies across all age groups in LATAM signifies a maturing market with a broadening base of participants. As the digital asset space continues to evolve, the trends identified in this report will be crucial for understanding the future trajectory of cryptocurrency adoption and investment preferences in Latin America.
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