cryptonews.net
The cryptocurrency market has shown rapid growth in recent years internationally driven by different factors.
Key takeaways
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Countries like Argentina and Venezuela are turning to stablecoins like USDT as a safeguard against inflation, with Latin America seeing 42.5% year-over-year growth in crypto transactions.
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Europe is a leading crypto market with strong regulatory support.With frameworks like MiCA, Europe is set to reach $40.5 trillion in trading volume by 2024, accounting for 37.32% of global cryptocurrency transactions.
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Both regions are leveraging cryptocurrencies for different needs.While Latin America focuses on financial inclusion and inflation protection, Europe’s growth is spurred by fintech innovation, regulatory clarity, and sustainability initiatives.
The cryptocurrency industry has experienced rapid growth in regions with emerging economies like Latin America to established economic zones like Europe.
Latin America had a year-over-year growth rate of approximately 42.5%. The region received nearly $415 billion in crypto transactions between mid-2023 and mid-2024.
Countries like Argentina, Brazil, and Venezuela are leading this growth. In Argentina, cryptocurrency has become a key tool to combat inflation, especially as the local currency, the peso, has faced severe devaluation. Stablecoins like USDT are especially popular, helping people preserve their savings amid economic instability. Brazil, on the other hand, has seen a rise in institutional crypto transactions, with a notable 48.4% surge in early 2024.
On the other hand, Europe is considered to be the second biggest crypto market worldwide. The total cryptocurrency trading volume in Europe is expected to reach $40.5 trillion by the end of the year.
Maria Fernanda Juppet, CEO of CryptoMKT, stated:
“The cryptocurrency market has experienced remarkable growth in various regions of the world, particularly in Latin America, Europe, and globally. On a global scale, the crypto market has surpassed $108 billion in transactions during 2024, a sign that cryptocurrencies are no longer a niche but a key component of the international financial system.”
Europe currently accounts for 37.32% of global cryptocurrency transaction value, placing it at the forefront of the global market.
What are the main factors behind the cryptocurrency growth in Europe and Latin America?
Latin America
One of the main drivers of cryptocurrency adoption in Latin America is economic instability.
Countries like Venezuela and Argentina have faced severe inflation, which has eroded the value of their national currencies. As a result, many citizens have turned to cryptocurrencies, particularly stablecoins like USDT (Tether), as a store of value and a means to protect their savings from hyperinflation. In these contexts, cryptocurrencies offer protection against economic crises, allowing people to preserve their wealth in a more stable currency.
Another factor contributing to the rise of the crypto industry is the lack of access to traditional financial services. According to the World Bank, a significant portion of the population in Latin America does not have access to a bank account or is underbanked. Cryptocurrencies offer an alternative financial infrastructure, providing people with access to decentralized financial services without the need for a traditional bank account. This has empowered people in rural and underserved areas to participate in the global economy, making crypto an essential tool for financial inclusion.
The region’s tech-savvy population has also driven the rise of cryptocurrencies. Latin America has a growing number of tech startups and blockchain developers, contributing to the development of the crypto ecosystem. Countries like Brazil, Mexico, and Colombia are seeing the emergence of innovative blockchain projects and fintech companies, attracting investment and talent to the region.
Europe
The European Union has worked to develop a clear regulatory framework, such as the Markets in Crypto-Assets Regulation (MiCA), which aims to regulate cryptocurrency markets and provide user protection. This favorable regulatory environment has given investors greater confidence and facilitated the adoption of crypto assets in sectors such as finance, technology, and commerce.
Additionally, Europe has a highly developed fintech ecosystem, with cities like London, Berlin, and Zurich emerging as innovation hubs. European fintech companies have incorporated cryptocurrencies into their business models, offering services such as crypto payments, blockchain-based loans, and digital asset investment platforms. This has allowed both businesses and consumers to adopt cryptocurrencies as an alternative way to conduct transactions and manage investments.
Interest in sustainability and decentralized solutions has also played a key role. Europe has led debates on the environmental impact of cryptocurrencies, driving the development of greener and more efficient blockchains, which has attracted the attention of companies looking to integrate these assets into their sustainability strategies.
Igor Pugachevsky, CPO of Blum, stated:
“Cryptocurrency adoption in Europe is steadily growing, especially in countries like Spain and Portugal. However, key barriers to mass adoption persist: these include regulatory issues and trust in new financial instruments.”
The growth of the cryptocurrency industry in both Latin America and Europe reflects the diverse economic and technological landscapes of these regions. In Latin America, economic instability and inflation have driven the widespread adoption of cryptocurrencies, especially in countries like Argentina and Venezuela, where stablecoins provide a vital safeguard against currency devaluation. Additionally, the lack of access to traditional banking systems has positioned crypto as a key tool for financial inclusion, empowering millions of people in underserved areas.
In contrast, Europe’s growth in the crypto market has been spurred by a well-regulated environment and the strong integration of cryptocurrencies within its advanced fintech ecosystem. Regulatory frameworks such as MiCA have provided clarity and security, promoting greater investor confidence. Europe’s focus on sustainability and innovation in blockchain technology has further reinforced its position as a global leader in the crypto space.
Together, these regions illustrate how cryptocurrencies are shaping financial landscapes globally, each driven by unique factors such as economic need, regulatory advancement, and technological innovation.