“In Argentina, operations tripled in March compared to January. In the case of stablecoins, they continue to grow in adoption, reaching weekly growths of up to six times “, explained from Ripio, the platform that allows buying and selling Bitcoin and other cryptocurrencies, and added: “Daily activity also tripled. Users who buy and sell cryptocurrencies on our platform went from an average of 3,000 to 10,000 per day. “ It is that, according to the fintech, as a result of the isolation provided by the Government and with banks operating in a reduced way, virtual channels and electronic payment means gained strength: “In this context, Bitcoin catalyzes the transformation towards a digital economy, more free and decentralized, and perceives a new growth boom in this scenario.”
From Bitex, a blockchain financial services provider that allows, among other functions, the purchase and sale of Bitcoin, coincided with the panorama. “The market is very high in volume, averaging 40 trillion a day worldwide. What caught our attention the most is that the market never stopped, it operated 24 hours a day, seven days a week, and it gave liquidity to all without breaks. I think there are no doubts in these times, either by the issuance of all governments to control the pandemic or by the “halving” of next month, many new investors joined the market, which brought more transaction volume, ” explained Eduardo Del Pino, CEO of Bitex, who remarked that locally the phenomenon is similar: “We have an increasing volume. We accompany the world market, each with its own scale. Everything that happens worldwide, affects Argentina, like all markets. For some time now there has been more interest, more institutional investors have been entering the market. ”
The halving in question is an event scheduled every four years, where the issuance of new bitcoins is halved. As they explained from Ripio, “the two previous ‘halvings’ (2011 and 2016) had a very positive result in the market and the price of the cryptocurrency, since they compress the offer and drive greater demand.” This year it will take place in May and it will be the first time that this event has encountered a global slowdown in the economy, so we will have to wait to know how the cryptocurrency will react to such a scenario.
The current crisis, which triggered a highly volatile market, also led to an increase in the operations of so-called “stablecoins”. It was, for example, the case of Dai: it is a cryptocurrency generated by its users through a security deposit, which maintains its stable value around one dollar. “Since January, great growth has been observed throughout the region. Because the holders of Dai are anonymous, we cannot say for sure how much it has grown by country. But in its total volume worldwide, the growth of stablecoins as a market rose from $ s4 billion to $ s6.5 billion in the last two weeks of March, the fastest increase in volume history for the stablecoin market, with Dai the most increased in the Latin American region. This is due to an insatiable demand for dollars worldwide, where the fact of having them in cryptocurrency format, allows management and access to other services not possible via the physical dollar, “he closed Mariano DiPietrantonio, Community Lead for LATAM de Dai.