XRP Gains Traction as a Payment Option in Latin America, New Statistics Show

New statistics released by crypto platform Bitso shows that XRP, as a payment option, is gaining traction with Latin American consumers.

Crypto platform Bitso has revealed interesting insights into the changing preferences of Latin American cryptocurrency users. In a recent report, Bitso highlighted a dramatic surge in the use of Ripple’s XRP for purchases within the region.

As of the third quarter of 2024, XRP accounted for 9% of all cryptocurrency purchases on Bitso’s platform. This places it third on the list, ahead of well-known cryptocurrencies like Ethereum and Solana, which were at 7% and 5%, respectively.

However, earlier in 2023, XRP was barely a factor in the average customer portfolio in Latin America. This signals a huge turnaround in cryptocurrency investment habits.

What Is Driving The Sharp Rise In XRP Use Among Mexican Cryptocurrency Traders?

A closer inspection of Bitso’s data for the third quarter of 2024 reveals that total platform activity has slowed. But as that happened, XRP buying activity rose. Among Bitso’s Mexican users, 10% of cryptocurrency buying was applied to stocking up on XRP. This occurred as new contributions to their portfolios slowed.

This tidbit is noteworthy because Bitso processes substantial volumes of cross-border payments.

In 2022, Ripple stated they processed $3.3 billion in remittances through their channel with Bitso from the United States into Mexico.

Latin American Cryptocurrency Users Are Holding More XRP

In the context of such vast cross-border payment volumes and the broader trends in cryptocurrency trading, Bitso’s report on the typical portfolio composition of its Latin American clients showcases the most impressive discovery.

As of 2023, XRP was nearly non-existent in the typical portfolio composition of Latin American Bitso clients. In 2024, that number had risen to 13%.

This is a staggering pace of adoption for a cryptocurrency to go from nearly zero to a 13% component in the portfolios of users in a specific region within a single year. It signals an urgent change in investment patterns.

Latin Cryptocurrency Users Still Favor Bitcoin And Stablecoins

While XRP’s surge was impressive, Bitcoin and stablecoins remained the dominant choices among Latin American crypto users, according to Bitso’s report.

Bitcoin made up 22% of the total purchases on Bitso in 2024, down from nearly 30% in the first half of the year. Meanwhile, stablecoins accounted for almost 40% of the purchases.

Stablecoins are likely preferred due to their role as a hedge against local currency inflation and an entry point for other crypto investments.