XRP Surges in Popularity Among Latin American Crypto Traders

XRP is rapidly gaining traction in Latin America, accounting for 9% of purchases on Bitso, up from negligible usage in 2023. Mexican traders drive this adoption, contributing significantly to XRP purchases and facilitating $3.3 billion in remittances. Portfolio composition shows a jump from 0% to 13% XRP holdings among users. Despite XRP’s growth, Bitcoin and stablecoins remain dominant, with Bitcoin representing 22% of transactions. Price appreciation in 2024 is linked to political events, fostering interest in XRP.

Recent data from the crypto platform Bitso indicates that XRP is becoming increasingly popular among Latin American consumers as a payment method. Currently, XRP accounts for 9% of all purchases on Bitso. This represents a significant shift compared to 2023 when XRP barely registered in customer portfolios across Latin America, showing a growing adoption of this digital currency in the region.

XRP’s rapid uptake is largely driven by Mexican cryptocurrency traders, who contributed 10% of their crypto purchasing activity towards XRP. Despite an overall slowdown in platform activity, XRP purchases have surged relative to other cryptocurrencies. In 2022, XRP also played a crucial role in cross-border transactions, with Ripple facilitating $3.3 billion in remittances from the US to Mexico via Bitso.

A striking observation from Bitso’s report is the dramatic increase in XRP holdings among its clients. Previously negligible in 2023, XRP now constitutes 13% of Latin American portfolios in 2024, signalling a major shift in investment strategies. This transition demonstrates a rising confidence in XRP among investors in the region.

While XRP has seen significant growth, Bitcoin and stablecoins remain the top choices for Latin American traders. Bitso’s findings indicate that Bitcoin made up 22% of total purchases in 2024, declining from nearly 30% earlier in the year. Stablecoins dominated the market, comprising approximately 40% of purchases, likely due to their perceived value as an inflation hedge and a safe entry for crypto investments.

The impressive 230% price increase of XRP in 2024, the most substantial increase since 2021, has also likely contributed to its popularity. Much of this price rally occurred during the last quarter of the year, driven by speculation surrounding US political developments. Changes, such as Donald Trump’s electoral victory and SEC Chair Gary Gensler’s resignation, have raised hopes for clearer regulation, potentially benefitting XRP and its parent company Ripple, which has faced legal challenges with US authorities.