Brazilian Investors Shift Focus from Bitcoin to Ethereum and Solana
In Brazil, the cryptocurrency market is witnessing a shift, with investors showing increasing interest in different cryptocurrencies including stablecoins, somewhat eclipsing the traditional dominance of Bitcoin. This trend is evident in the latest data released by the Federal Revenue Service based in Brasília, highlighting a dynamic evolution in the crypto trading landscape.
Recent statistics indicate that while Bitcoin transactions in Brazil have grown, the spotlight is increasingly on other cryptocurrencies like Ethereum and Solana. In October, Bitcoin saw a considerable increase in transaction numbers, but coins like Ethereum and Solana have shown even more robust growth rates. Ethereum, for instance, experienced a 58% increase in transaction numbers from last year, with its financial volume quadrupling. Solana's transactions doubled year-over-year, showcasing a tenfold increase in the financial volume handled, underscoring its growing appeal due to its speed and cost-effectiveness in DeFi applications.
The rise of these cryptocurrencies reflects a broader interest in blockchains that offer more than just speculative investment opportunities. They are platforms for practical applications in decentralized finance, where transactions can be faster and cheaper.
Stablecoins Dominate Transaction Volumes
Stablecoins, particularly those pegged to the US dollar such as USD Coin (USDC) and Tether (USDT), continue to lead in transaction volumes within Brazil. These 'dollar cryptos' have become pivotal, accounting for roughly 70% of the crypto transaction volume reported. Despite a decrease in the total value transacted by USDT from the previous year, the number of transactions surged by 81%, indicating a trend towards more frequent but smaller transactions.
USDC's transformation is even more pronounced, with transaction numbers skyrocketing from the previous year to this October, showing a massive increase in individual user activity rather than just institutional involvement. This shift suggests a democratization of crypto use, where even smaller amounts are being moved more frequently.
Vinicius Bazan from Underblock analysis house points out the utility of these cryptocurrencies beyond mere investment. They serve as efficient tools for international remittances and other financial transactions with low fees. He notes, "The user experience on the Solana network is very good, and there's an extreme growth in transactions with memecoins created and conducted on this blockchain."
The data shows approximately 1.3 million individuals were involved in crypto transactions in October, representing a third of all registered users by the IRS. On the corporate front, there was a noticeable decrease in participation, with 16.4 thousand entities involved, down 24% from the previous month, indicating a possible shift towards individual rather than institutional trading.
This evolving scenario in Brazil's crypto market not only highlights a diversification of investment interests but also reflects a broader, more inclusive adoption of blockchain technologies for practical financial solutions. As the landscape continues to evolve, watching how these trends influence both local and global crypto markets will be intriguing.