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Kaiko Report Shows Latam Leverages Crypto Most For Real-World Use Cases – Exchanges Bitcoin News
The latest data report issued by Kaiko, a digital asset market data provider, has found that while there is retail movement in Latam when it comes to cryptoassets, most of the liquidity is aimed at “real world” use cases. Among these activities are remittances, stablecoin-based return-generating investment options, and also payments, with Bitso and Mercado Bitcoin leading the volumes traded in the area.
Latam focuses on crypto differently, according to Kaiko
Much has been said about the use that Latam countries give to crypto-assets, many mentioning that these are a lifeline in the fight against inflation and devaluation. A new data report issued by Kaiko, a cryptocurrency market data provider, has found that a significant portion of the volumes moved in the area correspond to real-world uses of crypto, rather than just retail.
Most of the volumes traded are concentrated on just two exchanges. Mexico-based Bitso, and Brazil-based Mercado Bitcoin. Bitso comes first, handling trading volumes of $20 million to $30 million consistently, peaking at $60 million in one session in June. On the other hand, Mercado Bitcoin processes fewer crypto trades as the exchange is limited to Brazil, with the platform scoring up to $4 million in trading volume daily in the period under review.
Trading trends and special features
Kaiko decided that different from other regions, Latam presents a set of distinctive features that focus on the use cases mentioned earlier. Bitso, one of the crypto unicorns in the region, bases its activity on the remittance sector, for the most part. This is one of the reasons behind the fact that 60% of the volumes traded on the exchange involve XRP.
The exchange established a partnership with Ripple in 2020 to send near-instant transfers between Mexico and the United States, using Ripple’s on-demand liquidity and multiple banking partners. This has made Bitso one of the largest crypto transfer agents in the region, processing more than $1 billion in these operations by June. However, the exchange aims to enter more countries in the area.
Recently, the company expanded into Colombia and announced the launch of its remittance services in the country, using Circle’s USDC as part of this solution. Similarly, Bitso launched stablecoin yield-generating accounts, as part of its strategy to lure customers from countries such as Argentina, which are currently battling high levels of inflation and devaluation.
Mercado Bitcoin also recently announced intentions to expand its services to Mexico, to strengthen its offerings in the region.
What do you think of the information presented in Kaiko’s Latam report? Tell us in the comments section below.
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