Rising Popularity of XRP Among Latin American Crypto Users
Recent data from the cryptocurrency platform Bitso highlights a significant increase in the adoption of XRP as a preferred payment method among Latin American users. Currently, XRP constitutes 9% of all transactions on Bitso, gradually outpacing more established cryptocurrencies like Ethereum and Solana. This surge represents a remarkable shift from 2023, when XRP was rarely part of the typical investment portfolio in the region.
The Role of Mexican Traders in Boosting XRP Usage
The growing interest in XRP across Latin America is largely driven by Mexican crypto enthusiasts. According to Bitso’s analysis, Mexican traders devoted 10% of their cryptocurrency purchases to XRP. This trend emerged even as overall activity on the platform witnessed a slowdown, underscoring a significant rise in XRP transactions compared to other digital currencies.
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Mexico’s embrace of XRP is particularly noteworthy due to Bitso’s substantial processing of cross-border payments in the country. In 2022, Ripple, in collaboration with Bitso, facilitated $3.3 billion in remittances from the United States to Mexico, highlighting the token’s increasing relevance in financial transactions.
Significant Shift in Portfolio Composition with XRP Adoption
The Bitso report emphasizes a remarkable transformation in the composition of Latin American crypto portfolios. In 2023, XRP was virtually absent from the typical portfolio of Bitso clients in the region. However, by 2024, XRP holdings surged to 13%, indicating a dramatic shift in investment preferences among local investors.
This rapid integration of XRP into portfolios signifies growing trust and confidence among Latin American cryptocurrency investors, reflecting a broader trend of diversification and exploration of new digital assets.
Continued Dominance of Bitcoin and Stablecoins
Despite the impressive rise of XRP, Bitcoin and stablecoins continue to dominate the trading landscape among Latin American crypto users. Bitso’s report reveals that Bitcoin accounted for 22% of total purchases on the platform in 2024, although this marks a decline from nearly 30% in the year’s first half.
Stablecoins remain the most popular choice, representing almost 40% of cryptocurrency purchases. Their appeal lies in their stability and utility as a hedge against local currency inflation, as well as a gateway to broader crypto investments.
Impact of Political Changes and Price Trends on XRP’s Popularity
XRP’s remarkable 230% price increase in 2024, its highest since 2021, has undoubtedly contributed to its growing popularity. A significant portion of this rally occurred in the fourth quarter, fueled by various geopolitical and regulatory developments.
The report suggests that recent political events in the United States, including Donald Trump’s presidential victory and the resignation of SEC Chair Gary Gensler, have sparked renewed interest in XRP. These developments have raised hopes for potential regulatory clarity that could benefit XRP and its parent company, Ripple, which has faced legal challenges from US regulators.
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