Stablecoin trading volumes skyrocketed following the confirmation of the end of currency control measures in Argentine markets. Local exchanges reported a 100% increase in trading volumes, initially driven by selling trends. However, by Saturday, buyers had taken control, leading to rising exchange rates.
Argentine Stablecoin Trading Volumes Blow up as Currency Controls Get Lifted
The impending liberalization of currency controls has created turmoil in Argentine markets, as traders react to their predictions for next Monday’s movements. The stablecoin market is no exception, with Argentines initially selling digital dollars like USDT in large quantities.
After the announcement that Economy Minister Luis Caputo gave regarding the measure, stablecoin markets blew up in crypto exchanges, registering significant increases in trading volumes. Lemon, a local exchange, reported having experienced a rise of close to 100% in the volumes traded in the hour of Caputo’s conference.
Lemon’s users preferred to purchase stablecoins, with purchase trades being 35% higher than sales trades. Nonetheless, in other exchanges, the opposite happened.
Bitso, one of the largest exchanges in Latam, reported the opposite happening. Bitso’s customers posted more sell orders, which took prices down 5% during the hours following the announcement.
The exchange noted most of the traders moving their stablecoins were worried about the market behavior during the following week, but speculators also took part in this trading maelstrom.
Julian Colombo, CEO of Bitso Argentina, described how the market movements increased after the mentioned announcement. He stated:
We’re going through a period of high volatility, and this is reflected in user behavior. At Bitso, we’re seeing unusually high volume for this time of year, both in buying and selling.
It remains to be seen if Argentines will abandon the stablecoin market to pursue real dollars or if stablecoins, which have traditionally experienced high trading volumes, will remain strong in the face of these currency changes. Facts suggest the latter will happen, as the demand for stablecoins grew again on Saturday, causing the price of the digital dollar to stabilize with other dollar indexes.
Read more: Argentina Runs to Stablecoins Amidst Political and Economic Uncertainty