Stablecoin trading volume surges after foreign exchange control termination announcement, with a clear divergence between buying and selling trends on exchanges.
The stablecoin market in Argentina witnessed a trading explosion after the government confirmed the end of foreign exchange control measures. Local exchanges recorded a significant increase in trading volume, initially mainly due to selling trends, but by Saturday, buying momentum had taken over and pushed the exchange rate up.
Immediately after the announcement by Economy Minister Luis Caputo, the stablecoin market on cryptocurrency exchanges experienced strong volatility. Lemon, a local exchange, reported that trading volume increased nearly 100% in just one hour after the press conference. Notably, Lemon's users tended to buy stablecoins, with buy orders 35% higher than sell orders.
Divergent reactions among exchanges
While Lemon users rushed to buy, the situation at Bitso – one of the largest exchanges in Latin America – was the opposite. Bitso's customers made numerous sell orders, causing stablecoin prices to drop 5% in a few hours after the announcement.
According to Bitso, most traders shifted stablecoins due to concerns about market volatility in the following week. However, some speculators also participated in this trading wave, seeking to capitalize on price fluctuations.
Julian Colombo, Bitso Argentina's CEO, described: "We are experiencing a highly volatile period, which is clearly reflected in user behavior. At Bitso, we are recording unusual trading volumes for this time of year – both in buying and selling."
It remains unclear whether Argentinians will abandon stablecoins in favor of holding actual dollars, or if stablecoins – which have had high trading volumes for a long time – will continue to maintain their role in the changing monetary policy context. However, current data suggests the latter possibility seems more likely, as stablecoin demand increased again on Saturday, helping stabilize the digital dollar's price compared to other dollar indicators.
