Discover XRP’s growing popularity in Latin America in 2024, with data from Bitso highlighting its rise above other cryptocurrencies like Ethereum and Solana.

 XRP’s Rising Popularity in Latin America

XRP has emerged as one of the most popular cryptocurrencies in Latin America (LATAM) in recent years, particularly in 2024. A recent report from Bitso, a long-standing Ripple partner and a leading cryptocurrency exchange in the region, sheds light on the growing traction that XRP has gained among LATAM users. This article dives into the key findings of the report and explores the factors that have contributed to XRP’s rise in the region, including the evolving preferences of cryptocurrency users and shifts in portfolio composition.

LATAM Users’ Preference for XRP: A Strong Growth Trend

One of the most striking findings from Bitso’s 2024 report is the increasing popularity of XRP among its Latin American users. Despite a decline in overall trading activity on the platform, the acquisition of XRP has seen a substantial increase. Interestingly, XRP now stands out among other well-known cryptocurrencies like Ethereum, Solana, and Dogecoin, signaling a shift in user preferences. In fact, the report reveals that XRP accounted for 9% of all purchases on Bitso, outperforming meme coin PEPE, which secured 6%, and Ethereum, Solana, and Dogecoin, with 5%, 4%, and 2%, respectively.

This surge in XRP purchases is particularly notable because, in previous years, XRP was not a prominent asset in the average portfolio composition of LATAM users. The report highlights how user sentiment has dramatically shifted, favoring XRP as a key player in their digital asset portfolios.

XRP’s Market Performance: Key Drivers for Its Popularity

The impressive growth of XRP in LATAM can be attributed to several key factors. First and foremost is the remarkable market performance of XRP in 2024. The asset surged by 238% in the year, marking its strongest performance since 2021. Much of this growth occurred in the final quarter of the year, driven by significant market events such as the election victory of Donald Trump and the resignation of US SEC Chair Gary Gensler. These developments created a wave of optimism that spread through the XRP community, fueling increased demand in regions like LATAM.

The positive momentum surrounding XRP has encouraged Latin American investors to diversify their portfolios, making room for a higher proportion of XRP than ever before. This growing interest is indicative of a wider shift in regional investment strategies, particularly as XRP gains more regulatory clarity and positive market sentiment.

XRP’s Role in the LATAM Cryptocurrency Ecosystem

In terms of its overall role within the LATAM cryptocurrency ecosystem, XRP has become a cornerstone of many portfolios. Notably, in Mexico—one of the largest markets in the LATAM region—XRP has become the second most purchased cryptocurrency, trailing only Bitcoin and stablecoins. In fact, 10% of all purchases on Bitso from Mexican users were XRP acquisitions, highlighting its growing prominence in the region.

This trend is also visible in the broader LATAM market. While Bitcoin and stablecoins have traditionally dominated, with stablecoins accounting for 39% of all acquisitions in 2024, XRP has carved out a niche for itself. It has steadily gained ground as a favored digital asset in LATAM, showcasing its potential to expand further in the region as users become increasingly aware of its utility and market potential.

Changes in Portfolio Composition: From No XRP to 12% in LATAM
Perhaps the most significant change highlighted in Bitso’s 2024 report is the dramatic shift in portfolio composition among LATAM users. Just one year ago, XRP was not a part of the typical cryptocurrency portfolio for most Latin American traders. Fast forward to 2024, and XRP now constitutes, on average, 13% of users’ portfolios. This stark shift indicates that many LATAM investors are now viewing XRP as a more viable and valuable asset in their long-term crypto strategy.

This evolution in portfolio composition is not just a reflection of XRP’s price growth; it also points to a broader trend of increasing confidence in the asset. As the cryptocurrency market matures and more users gain experience, there is a clear preference for diversifying holdings to include XRP, especially as its legal and regulatory landscape becomes clearer.

Factors Contributing to XRP’s Popularity
Several factors have contributed to XRP’s growing popularity in LATAM, and understanding these elements provides insight into why this trend is likely to continue. The first major factor is regulatory clarity. XRP has faced a long-running legal battle with the US Securities and Exchange Commission (SEC), but the tides appear to be turning in favor of the cryptocurrency. This shift has generated a renewed sense of optimism among investors, particularly in LATAM, where regulatory developments are closely monitored.

Additionally, XRP’s use case in remittances has made it an attractive option for many Latin American users. Bitso, as a Ripple partner, has been at the forefront of utilizing XRP for cross-border payments, particularly between the US and Mexico. This use case for remittances has made XRP more relevant to LATAM users, who often send and receive money across borders.

Lastly, the broader economic environment in LATAM, characterized by inflation and currency devaluation in some countries, has encouraged individuals to seek alternative investment options. Cryptocurrencies like XRP provide a hedge against local economic instability, making them more appealing to Latin American traders.

The Future of XRP in LATAM: A Promising Outlook
Looking ahead, the future of XRP in LATAM appears bright. With continued growth in market adoption, regulatory clarity, and the expanding use of XRP in cross-border remittances, it is poised to maintain its upward trajectory in the region. As more users in LATAM recognize the potential of XRP, both as a store of value and a utility asset, its role in cryptocurrency portfolios is likely to increase.

Moreover, as Ripple and Bitso continue to strengthen their partnership, the infrastructure for XRP-based transactions will become even more accessible. This increased accessibility, coupled with rising awareness of XRP’s use cases, will likely drive further adoption among LATAM users.

FAQs

1. Why is XRP gaining popularity in Latin America?
   XRP is gaining traction in Latin America due to its strong market performance, use in cross-border payments, and the growing regulatory clarity surrounding the asset. Additionally, XRP’s role in remittances has made it especially attractive in countries with high levels of cross-border transactions.

2. What are the main factors driving XRP’s growth in 2024?
   Key factors driving XRP’s growth include its impressive 238% price increase in 2024, the resignation of US SEC Chair Gary Gensler, and the positive sentiment surrounding the asset following these events. Furthermore, its utility in remittances plays a crucial role in its rise.

3. How much of a LATAM user’s portfolio is made up of XRP?
   As of 2024, XRP constitutes an average of 13% of cryptocurrency portfolios among LATAM users on Bitso, showing a significant increase from the previous year when it was not part of the average portfolio.

4. Which LATAM countries are most active in buying XRP?
   Mexico has shown the highest level of XRP acquisitions, with 10% of the country’s total purchases on Bitso involving XRP. Other LATAM countries have also seen a growing interest in the asset.

5. What role does XRP play in remittances in LATAM?
   XRP is a key asset used in cross-border remittances in LATAM, particularly between the US and Mexico. Bitso has facilitated this through its partnership with Ripple, making XRP an essential part of the region’s remittance infrastructure.