Despite the relative stability that the exchange rate maintained in the first half of 2024, Argentina has established itself as the country in the region with the largest purchase of crypto or digital dollars in that periodaccording to the second edition of the “Crypto Panorama in Latin America”, prepared by Bitso.
The study, which reveals the main trends of the crypto industry in the region during the first half of the year, shows that Argentines stand out as those who most choose to buy crypto dollars in Latin America, due to “a combination of cultural factors, exchange rate fluctuations and high inflation recorded in the first half of the year”.
This prompted them to lean towards crypto, first of all, to protect their income and assets from the volatility of these variables rather than investing in search of returns. That’s why, were those who bought the most crypto dollars, USDC or USDT, and those who invested the least in Bitcoin in that period, compared to countries in the region.
More than 6 out of 10 purchases in the first half of the year were of these stablecoins (USDC or USDT, with a 1:1 parity with the dollar), compared to the 36% average in Latin America, the study details.
Furthermore, Argentina is the only country in the region where These currencies are in second place in holdings with 22% of the total (only behind Bitcoin) compared to just 5% on average in the region’s wallets, where they are ranked fifth in importance.
“Exchange rate fluctuations, cultural issues and inflation encourage Argentines to look for safe and fast options to protect their money. That is why Argentina is the only country where the purchase of crypto dollars is almost six times higher than that of bitcoin.”he explained Julian ColomboGeneral Manager of Bitso Argentina, during the presentation of the report.
“In addition, as in the last half of 2023, the largest number of purchases occurs in the first week of the month, which shows that many acquire crypto when receiving their salary, to protect themselves while generating returns”he added.
Bitcoin, the most chosen crypto in the long term
Bitcoin (BTC) represents 53% of the wallets in the region and 50% of the Argentine ones (2 percentage points more than the previous semester), which shows that it is an asset chosen for long-term holdings.
In fact, despite this high participation in the portfolios, Argentina was the country where this currency was least purchased in the first half of the year: it accounted for only 12% of purchases, less than half of the regional average, where it represented 28% of the total. Driven by the halving and the launch of ETFs, the value of Bitcoin grew 108% year-over-year as of June 30.
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In the first half of the year, the crypto market was expecting a new crypto summer, especially after the fourth Bitcoin halving, the approval of ETFs (exchange-traded funds) of that same currency and for having reached its historical maximum price (above US$72,000). These milestones led to a greater adoption of cryptocurrencies among people and companies globally and also in Argentina, where the number of Bitso users grew 16% in one year, reaching more than 1.5 million users.
Daniel Vogel, CEO and co-founder of Bitso, highlighted that “The region shows fertile ground for crypto growth, with a 16% increase in Bitso users in Latin America and more than half of our users now coming from outside of Mexico, mainly from Argentina, Brazil and Colombia.”
Crypto user profile in Argentina
The profile of the Argentine cryptocurrency user shows a similar trend to that of the region, with a 36% of users are between 25 and 34 years old. However, trading activity is concentrated especially among the 25 to 54 age groups.
For its part, Argentina stands out for its Greater female participation in the crypto market, with 30% of female users compared to the regional 27%, and Argentine women tend to enter the crypto world at an older age than their male peers.
What other cryptocurrencies do Argentines buy?
As for altcoins, Ether (ETH) and Solana (SOL) stand out in Argentina, with the former representing 13% of Argentine portfolios. SOL’s popularity grew by 677% year-over-year.
For their part, memecoins have also seen a significant increase, with Pepe going from 1% to 7% in purchasing preferences in the region and in Argentina, while Shiba and Doge each accounted for 1% of purchases.
“With our leadership in the region and Bitso’s continued growth in Argentina, we are confident that this data is a representative reflection of the market. We are proud to offer this information, which will help current and future market participants make more informed decisions,” Colombo concluded.
Source: Ambito
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