Brazilian companies turn to stablecoins during election to hedge against risk of a sharp fall in the local currency
BIBIBI
AT A GLANCE
Reports said that Brazilian companies increased stablecoin trading during the October 25 election, followed by sharp fluctuations in the real and stock market.
Article
【Brazilian companies turn to stablecoins during election to hedge against risk of a sharp fall in the local currency】
Brazilian companies turned to stablecoins during Sunday's election (October 25) to hedge against the risk of a sharp fall in the local currency. Crypto exchange Mercado Bitcoin said that corporate accounts contributed 78%of the day's trading volume. On election day,USDT trading volume jumped nearly 1 compared with the same day of the previous 800%, more than 3 times the average of the previous four Sundays; Bitcoin trading volume rose 1 compared with the previous 865%Sunday. Biscoint data showed that trading volume for USDT against the real rose 1 compared with the previous 150%，USDC rose 318%。Mercado Bitcoin research analyst Pedro Fontes said that, amid increased exchange-rate pressure,USDT and USDC and other stablecoins are a simple way to make part of one's assets USD-denominated. On Monday, corporate concerns became reality: Brazil's benchmark Ibovespa stock index plunged 14%—its worst performance since 2020;March against the real rose more than USD, its largest single-day gain since 8%. On Monday, the combined trading volume of 1999 and USDT reached USDC reals (approximately 1840000000), more than 350000000 USD above the previous 1 week. 65%。
Key points
01
Mercado Bitcoin said that corporate accounts contributed 78%of the trading volume on election day.
02
On election day,USDT trading volume rose nearly 1 compared with the same day of the previous 800%, more than 3 times the average of the previous four Sundays.
03
On election day, Bitcoin trading volume rose compared with the previous 1 Sunday by 865%。
04
Biscoint data showed that USDT trading volume against the real rose compared with the previous 1 Sunday by 150%，USDC rose 318%。
05
Pedro Fontes said that, amid increased exchange-rate pressure,USDT and USDC and other stablecoins are a simple way to make part of one's assets USD-denominated.
06
On Monday, Brazil's benchmark Ibovespa stock index plunged 14%，USD against the real rose more than 8%。
07
On Monday,USDT and USDC reached 1840000000 reals, more than 1 above the previous week. 65%。
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Stablecoins are generally used to maintain a relatively stable unit-of-account value. The article says that some Brazilian companies increased USDT and USDC trading during the election, hoping to reduce the risk posed by a sharp fall in the local currency; the following day, the real and the Ibovespa stock index both fluctuated sharply.
Why it matters to readers
These data suggest that, as exchange-rate pressure increases, companies may use stablecoins more frequently to USD their assets; however, increased trading volume alone cannot indicate price direction or the ultimate use of funds.
Beginners may monitor stablecoin-to-real trading volume, the USD-to-real exchange rate, and the Ibovespa stock index, but should not infer market direction solely from the increase in trading volume.
Risks and unknowns
The information comes from a Telegram channel's retelling and does not include original data links from Mercado Bitcoin or Biscoint.
The article does not explicitly state the year in which the election and market volatility occurred.
The different trading-volume increases come from different platforms, assets, and comparison bases, and cannot be directly compared across sources.
The article does not specify the number of corporate accounts, the direction of the trades, or the ultimate use of the funds.
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Related concepts
Stablecoin
An asset that seeks to track a reference value and is subject to risks including depegging, reserves, and redemption.
