Venezuelans Shift to USDT Amid 229% Inflation Rise

In Venezuela, soaring inflation of 229% has driven residents to adopt USDT for everyday transactions as the national currency, the bolívar, becomes practically unusable.

The shift to USDT highlights the impact of hyperinflation, capital controls, and exchange rate issues, underscoring its role as a stabilizing financial tool in a volatile economy.

Inflation Crisis Drives USDT Adoption in Venezuela

Mauricio Di Bartolomeo, Ledn co-founder, notes that USDT offers Venezuelans a financial equalizer. He described it as the “better dollar,” emphasizing its critical role in the current economic climate.

Experts suggest that this shift to USDT reflects broader financial trends where volatile markets prompt a turn toward stable assets. Using data from Coincu Research, evidence shows that peer markets might see similar shifts amid economic instability.

“USDt now functions as both a better dollar and a financial equalizer across social classes.” — Mauricio Di Bartolomeo, Co-founder & Chief Strategy Officer, Ledn

Stablecoins Provide Financial Security Amid Economic Instability

Did you know? Venezuela’s adoption of USDT echoes earlier economic crises where citizens turned to alternative currencies amid rampant inflation.

According to CoinMarketCap, Tether’s price remains at $1.00 per USDT. Its market cap stands at $168.87 billion, controlling 4.41% of the market. Despite marginal 24-hour price changes of 0.01%, trading volume dipped by 36.77% to $68.94 billion.

Experts suggest that this shift to USDT reflects broader financial trends where volatile markets prompt a turn toward stable assets.