These days Argentina is experiencing a financial crisis. As a result, many citizens attracted to cryptocurrency market, especially Bitcoin. In line with wallebi, Argentinians are exploding crypto ecosystem by buying and accumulating bitcoin.
Argentinians are exploding crypto ecosystem; New crypto users are flooding into ecosystem
Life is becoming extremely difficult in Argentina due to financial crisis. Therefore, many people attracted to cryptocurrencies, which had a positive impact on the ecosystem. Binance, the most famous crypto exchange, announced that they experienced an explosion of Argentinian users’ registration on this platform. Statistics show that the number of new Argentinian users on this platform is five times more than 2019.
Binance experienced a significant grow in Argentina
The Latin American team in Binance stated that the number of Argentinian users multiplied by five on this platform from January to today. However, if we consider market average, the growth would be equivalent to 300% this year.
Maximiliano Hinz is Binance’s director of operations for Latin America. He said: Although COVID-19 pandemic acted as a catalyst, the financial crisis and bad public policies in Argentina pushed people to consider crypto as an excellent and suitable way to store their asset.
Argentinians are exploding crypto ecosystem; Paxful also follows Binance
LocalBitcoins competitor, Paxful crypto exchange, also experienced growth in Argentina. This exchange reported 1,000% new registrations on its platform as well as 450% surge in the volume operated in Argentina. The figure below shows the explosion of trading volume in Paxful exchange. This figure shared by Paxful’s Latin American management consultant.
The reason behind this explosion is the same for Paxful. Actually, the difficulty to have access to foreign currencies in order to store value led people to use alternative solutions such as Bitcoin. In addition, COVID-19 pandemic was a catalyst to this explosion.
Other fields experienced growth as well
Other crypto-related fields also experienced growth in 2020. One of the most important fields, which experienced significant growth is fin-tech. The Inter-American Development Bank (IDB) reported that the number of businesses, which are the competitors of traditional financial services grew for 100% through 2020.