XRP gains popularity for payments in Latin America

A recent report from Bitso, a significant partner of Ripple, has shed light on the rising popularity of XRP in Latin America, indicating that XRP is swiftly becoming a preferred payment choice.

When compared to Ethereum and Solana, XRP has displayed a more substantial market expansion in the realm of cryptocurrencies. Recent statistics reveal that XRP constitutes 9% of total transactions executed on Bitso platforms. While XRP’s presence in the average customer’s portfolio was negligible in 2023, the scenario has undergone a significant transformation since then.

XRP’s surge in popularity is particularly evident in Mexico, surpassing Ethereum and Solana in user preferences. The Mexican cryptocurrency community has shown an increasing interest in XRP, contributing to its surging popularity. Users on the Bitso platform have embraced XRP, with Mexican users accounting for 10% of all transactions as they opt for XRP as their primary trading token. Even as overall platform usage declines, XRP continues to attract users, overshadowing other cryptocurrencies.

Notably, the Bitso report offers valuable insights into the trading habits of Latin American (LATAM) users on their platform. XRP has witnessed an unprecedented spike in its worth, with increased buying activity observed during a period where overall trading volumes were on the decline. The escalating popularity of XRP surpasses that of established cryptocurrencies like Ethereum, Solana, and Dogecoin. These trends suggest that XRP is gaining traction as an alternative payment asset in the Latin American cryptocurrency market.

In the latest report from 2024, XRP constituted 9% of all transactions on Bitso, outpacing meme coin PEPE by 3%. In contrast, Ethereum, Solana, and Dogecoin accounted for 5%, 4%, and 2% of transactions respectively. These figures solidify XRP’s position as one of the top cryptocurrencies in the region, particularly among LATAM traders.

Bitcoin, along with stablecoins, continues to dominate trading activities on Bitso. Bitcoin transactions accounted for 22% of total transactions, slightly below its previous performance of 28% over six months. Stablecoins, on the other hand, represented 39% of the market share, emphasizing the Latin American market’s demand for stable dollar-backed assets.

The report also hints at regulatory shifts influencing XRP’s surge in popularity. Confidence in XRP was buoyed by Gary Gensler’s departure from the US SEC and positive signs of regulatory clarity in the United States. Ripple’s bolstered confidence and remittance services endeavor have propelled XRP’s heightened appeal across LATAM.

XRP’s presence in Latin America has been significantly bolstered by Bitso’s unwavering support, as the exchange has maintained a longstanding partnership with Ripple. Through this collaboration, US and Mexican adults can seamlessly execute borderless payments, processing billions of dollars in transactions. In 2022 alone, Bitso processed $3.3 billion in remittances, reinforcing XRP’s position as an efficient and cost-effective international payment service provider.

Ripple’s technology purveys promising business prospects in Latin America through XRP’s regional expansion. As Ripple continues to facilitate remittances, business payments, and cross-border transactions in LATAM, XRP’s ongoing local adoption by users is set to solidify its stature as a premier cryptocurrency throughout the region.