The Brazilian Authority recently published some of their crypto numbers which indicated a major uptick in the crypto market in 2023. They reported that in January 2023, the trading volume surged by 10% as compared to December. This shows that retailers are getting back into the market, and the market sentiment is changing. The numbers shared by the authority also show that Tether (USDT) still has the most volume in the market.
Crypto market bouncing back in January
In January, the Brazilian tax authority responsible for collecting taxes on cryptocurrency transactions published a report on the volume of crypto activity. According to the report, there was an increase in the cryptocurrency market, with a total of $2.85 billion in transactions during the month.
After experiencing some setbacks, such as the bankruptcy of major cryptocurrency exchanges and lenders like FTX, Celsius, and Blockfi, the global cryptocurrency sector bounced back in January. The Brazilian tax authority’s report shows that the market grew by over 10% compared to December.
The report by the Brazilian tax authority indicates that the number of individuals and companies buying cryptocurrencies was moderate, surpassing December’s figures but lower than the record-breaking numbers seen in 2022. Despite this, the cryptocurrency volume increased significantly, with only May’s numbers being higher than those reported in January.
Tether volume still dominates the market
According to a recent report by the Brazilian tax authority, Tether’s USDT remains the most popular stablecoin among Brazilians for storing and transferring funds in the cryptocurrency market. In January, the report showed that there were $2.3 billion in transactions using USDT, reaffirming its dominance over other cryptocurrencies.
The substantial increase in the usage of Tether’s USDT in Brazil, which grew by over 50% in 2022, has drawn the attention of analysts. The January report revealed that Brazilians are turning to stablecoins as a means of shielding themselves from inflation and avoiding fees associated with using actual dollars in a bank account.
Despite the reasons mentioned for the increased usage of USDT, some analysts suspect that there may be other uses for the stablecoin due to its high transaction volume. Fabricio Tota, the business director at Mercado Bitcoin, a local cryptocurrency exchange, suggests that USDT may be used by both institutions and individuals to send money overseas.
What are your thoughts as the Brazilian Authority releases crypto numbers showing an uptick in January? Let us know in the comments below. Also if you found our content informative, share it with your family and friends.
Also Read: Galaxy Digital Predicts Bitcoin NFT Market to Reach $4.5B by 2025.