Echobit Labs | LATAM Trading Behavior: Stablecoins, Retail Trading, and Risk Appetite
2026.05.26
1.LATAM Is Becoming the World’s Most Typical “Stablecoin-Driven Trading Market”
Over the past few years, the LATAM crypto market has gradually evolved from an early Bitcoin store-of-value narrative into a trading structure increasingly centered around stablecoins.
According to Kaiko Research — The State of LATAM Crypto Markets 2025, USDT has become the most traded crypto asset across LATAM, accounting for a significant share of overall regional trading activity.
The report highlights that demand for stablecoins in LATAM is significantly higher than in Western markets because many users enter crypto not primarily for high-risk speculation, but rather to:
- Gain U.S. dollar exposure
- Avoid local currency depreciation
- Reduce exchange rate risks
- Improve capital liquidity
Particularly in countries such as Argentina and Venezuela, stablecoins are increasingly being used for savings, remittances, OTC settlement, and as substitutes for traditional financial services.
Source:
https://app.kaiko.com/chart-books
Echobit Labs View
The most unique characteristic of the LATAM market is that stablecoins are no longer functioning solely as trading intermediaries. In many countries, USDT has effectively become a form of “digital dollar account.”
As a result, the future competition within the LATAM crypto market may not revolve around which platform lists more tokens, but rather around which platforms can build:
- More stable fiat on-ramp systems
- Lower-cost stablecoin conversion networks
- Stronger P2P liquidity infrastructure
2.CEX Platforms Still Dominate the LATAM Market
Although DEX adoption continues growing globally, LATAM users still rely heavily on centralized exchanges. According to the Chainalysis Geography of Cryptocurrency Report, most crypto trading volume in LATAM is still processed through CEX platforms.
The primary reasons include:
- Strong demand for fiat deposits and withdrawals
- Limitations within local banking systems
- Higher reliance on customer support services
- A large percentage of users are still first-time retail crypto participants
At the same time, platforms such as Binance, Bitso, and Mercado Bitcoin continue maintaining strong market share across LATAM. However, DEX adoption is also gradually increasing, particularly within:
- Meme Coin trading
- DeFi ecosystems
- Solana-based applications
- TON Bot trading
Source:
https://www.chainalysis.com/blog/2024-global-crypto-adoption-index
Echobit Labs View
LATAM users currently remain more inclined toward “platform-based trading.” The reason is relatively straightforward: for many users, the first step into crypto is purchasing stablecoins and converting value into dollars for transfers, rather than directly participating in complex DeFi ecosystems.
As a result, the LATAM market will likely maintain a long-term “CEX-dominated + DEX-growth” dual structure.
For centralized exchanges, localized fiat infrastructure, customer support systems, and stablecoin liquidity depth may remain more important than increasingly complex on-chain functionality.
3.High-Frequency Retail Trading Is Growing Rapidly
Beyond stablecoin demand, high-frequency retail trading activity across LATAM is also increasing rapidly.
According to Kaiko Research, younger LATAM users are showing growing interest in high-volatility assets, particularly in sectors such as:
- Meme Coins
- Solana ecosystem assets
- AI Tokens
- Perpetual futures trading
Meanwhile, CoinGecko’s 2025 Meme Coin Report also notes that participation in Meme assets across LATAM communities continues rising, while social media sentiment increasingly influences trading decisions.
This suggests that the LATAM user structure is gradually becoming segmented:
- One group primarily uses stablecoins
- Another group is actively entering high-risk speculative markets
Sources: https://marketing.kaiko.com/hubfs/The%20State%20of%20LATAM%20Crypto%20Markets%2C%202025.pdf
https://www.coingecko.com/research/publications/state-of-memecoins-2025
Echobit Labs View
The LATAM market is developing a highly distinctive “dual-structure” user behavior pattern.
Users may rely on stablecoins during the day for remittances, savings, and fiat conversion, while simultaneously participating in high-volatility markets involving Meme Coins, AI Tokens, and leveraged trading.
This structure demonstrates that LATAM users possess both:
- Practical real-world financial needs
- Strong risk appetite for speculative trading
As a result, future platform competition in LATAM may not be determined by a single product category, but rather by the ability to simultaneously satisfy both stability-oriented demand and trading-oriented demand.
4.Solana and Meme Markets Are Expanding Rapidly
Over the past year, Solana’s influence within LATAM has increased significantly.
According to the Electric Capital Developer Report, Solana has become one of the fastest-growing blockchain ecosystems globally, while younger LATAM users show strong preference for low transaction fees and high-speed trading experiences.
At the same time, the expansion of the Solana Meme ecosystem has driven large numbers of LATAM users into on-chain trading. Meme Tokens such as BONK, WIF, and POPCAT have spread rapidly across Spanish-speaking communities.
According to Dune Analytics data, active addresses and Meme trading volume on Solana continued growing throughout 2024–2025.
Sources:
https://dune.com/altcoin_analyst/solana-activity
https://solana.com/vi/news/network-health-report-june-2025?utm_source=chatgpt.com
Echobit Labs View
LATAM users appear far more receptive to Meme assets than many market observers initially expected.
This is because Meme culture is not purely speculative in nature. It also contains elements of:
- Community-driven engagement
- Emotional resonance
- Social identity and belonging
These characteristics align closely with LATAM’s highly social and community-oriented culture.
As a result, LATAM could eventually become one of the world’s most active regions for Meme-driven and community-based trading activity.
5.AI Tokens and RWA Assets Are Entering the LATAM Market
Beyond the Meme sector, LATAM users are also beginning to pay closer attention to AI and RWA narratives.
According to Messari Research, AI-focused crypto projects continued attracting strong market attention throughout 2025, while the RWA sector has increasingly become a key area of focus for both institutions and emerging markets.
Particularly in LATAM, many users show strong interest in:
- U.S. Treasury-backed assets
- Dollar-yield investment products
- On-chain stable yield opportunities
Source:
https://messari.io/project/real-world-assets/news
Echobit Labs View
LATAM interest in AI and RWA assets is still fundamentally tied to real-world financial conditions.
Many users are not simply chasing technological narratives. Instead, they are seeking:
- More stable returns
- Safer dollar-based assets
- Lower-barrier access to global financial products
As a result, the long-term growth potential of RWA markets in LATAM may ultimately exceed that of many mature economies.