Following confirmation of the end of currency management measures in the Argentine market, Stablecoin’s trading volume rose sharply. Local exchanges reported a 100% increase in trading volume, which was initially driven by sales trends. But by Saturday, buyers had taken control, leading to a rise in exchange rates.
Argentine Stablecoin trading volume explodes as currency controls are lifted
The imminent liberalization of currency management has caused chaos in the Argentine market as traders respond to forecasts for next Monday’s movement. The Stablecoin market is no exception, with Argentina initially selling a large amount of digital dollars like USDT.
After the announcement that Economy Minister Lewis Caputo had made this measure, Stablecoin Markets exploded in crypto exchanges, recording a massive increase in trading volume. Local exchange Lemon reported that it had experienced a nearly 100% increase in volumes traded during the time of the Caputo meeting.
Lemon users prefer to buy Stablecoins, with purchase transactions being 35% higher than sales transactions. Nevertheless, in other exchanges, the opposition occurred.
One of the biggest interactions in Latam, Bitso reported an outbreak of the opposite. Bitso customers posted more sell orders. This caused prices to fall by 5% during the time since the announcement.
The exchange pointed out that most of the traders running their stubcoins were worried about the market behaviour the following week, but speculators also joined the trade vortex.
Bitso Argentina CEO Julian Colombo explained how the market movement has increased after the mentioned announcement. He said:
We have experienced a period of high volatility, which is reflected in the behavior of the user. At Bitso, during this period, there are abnormally large numbers of them both in buying and selling.
It is still unclear whether Argentina will either abandon the stubcoin market to pursue the actual dollar, or whether stubcoin, which traditionally experienced high trading volumes, will remain strong in the face of changes in these currencies. The fact suggests that the latter will happen as demand for stubcoin rises again on Saturday, with the price of digital dollars stabilizing on other dollar indices.
Read more: Argentina runs to stablecoins amid political and economic uncertainty
