ChainCatcher report, according to CoinDesk, Brazilian businesses turned to stablecoins during Sunday’s election (October 25) to hedge against the sharp depreciation of the local currency. Crypto exchange Mercado Bitcoin reported that business accounts accounted for 78% of total trading volume that day. On election day, USDT trading volume surged nearly 800% compared to the same period the previous week—more than triple the average of the prior four Sundays—while Bitcoin trading volume rose 865% week-over-week. Data from Biscoint showed USDT/BRL trading volume increased 150% and USDC volume rose 318% compared to the previous Sunday. Pedro Fontes, research analyst at Mercado Bitcoin, stated that in times of heightened exchange rate pressure, stablecoins like USDT and USDC offer a simple way to partially dollarize assets. On Monday, corporate concerns materialized: Brazil’s benchmark Ibovespa index plunged 14%, its worst performance since March 2020; the USD/BRL exchange rate jumped over 8%, marking its largest single-day gain since 1999. On Monday, combined USDT and USDC trading volume reached BRL 1.84 billion (approximately $350 million), up 65% from the previous week.
Brazilian companies turn to stablecoins amid election-driven currency volatility
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Summary
Brazilian companies increased stablecoin usage during the October 25 election amid Real volatility. Corporate accounts accounted for 78% of Mercado Bitcoin’s trading volume, with USDT surging 800% from the prior Sunday. Bitcoin trading volume rose 865%. Biscoint data showed USDT/BRL volume up 150% and USDC up 318%. Pedro Fontes said stablecoins provide a way to hedge against currency fluctuations. The Ibovespa fell 14%, while the dollar gained 8% against the Real. Combined USDT and USDC volume reached BRL 18.4 billion, up 65% from the previous week.
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