A report by Chainalysis has confirmed Brazil’s leadership in crypto activity in Latin America. The country stands out for its institutional tendency, which translates into large-volume transactions.
Furthermore, Brazil remains a leader in cryptocurrency adoption in the region.
Brazil draws attention for institutional crypto investments
According to Chainalysis, the monthly value of institutional-sized transactions in Brazil increased by 29.2% between the last two quarters of 2023. In addition, the number grew by 48.44% between the fourth quarter of 2023 and the first quarter of 2024.
The blockchain analytics firm only considered transactions above $1 million for this calculation.
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“One of the key factors is portfolio diversification, especially as the market matures. Investors are increasingly integrating digital assets into their strategies as they see them as valuable investment alternatives that offer the potential for better returns. The consolidation of Bitcoin and other cryptocurrencies as established investment options has been crucial to this shift,” BTG Pactual’s head of digital investments, André Portilho, told Chainalysis.
Historical data from the analytics firm indicates that institutional investments account for the majority of cryptocurrency transactions in Brazil. The number of retail transactions, on the other hand, is much lower.
Chainalysis also revealed that around 70% of transactions between Brazilian and global exchanges occur with stablecoins. “The high level of stablecoin activity in Brazil, as well as a general interest in digital products and services, are attracting significant attention from large crypto players – such as Circle,” the report says.
Latin America continues to rise
In addition to Brazil, the company provided insights into the region’s crypto market. Latin America is ranked second in the world in terms of cryptocurrency adoption. It has moved around US$415 billion in cryptocurrencies, a figure that represents an increase of around 42.5% over the past year.
Despite the good numbers, Brazil lost to Argentina in the value of cryptocurrencies received. The neighboring country registered US$ 91.1 billion in the period between July 2023 and June 2024. In the same period, Brazil registered US$ 90.3 billion.
Argentina is also experiencing a process of expanding its stablecoin market. Chainalysis points to economic instability as one of the main factors, since stablecoins offer protection against inflation and devaluation of the local currency.
The article Institutional crypto investments are still high in Brazil, says report was first seen on BeInCrypto Brazil.
