Author: Esther @IOSG

Foreword

Argentina's Web3 industry research stems from a fundamental premise: Argentina represents a significant, economically essential, and critical real-world use case for cryptocurrency. Decades of persistent economic instability, including hyperinflation of nearly 300% and stringent capital controls, have made stablecoins and decentralized assets a vital financial safe haven for millions of citizens. This bottom-up, organic, large-scale adoption, coupled with a world-class pool of technical talent, has created a unique ecosystem. This makes the Argentine ecosystem an invaluable living laboratory, helping us deeply understand how decentralized technologies can actually be effective in addressing pressing social and economic challenges and solving real-world problems.

Devconnect 2025

This report aims to provide forward-looking insights into the global Web3 community ahead of the Devconnect conference in Buenos Aires in November 2025. By showcasing Argentina's market dynamics, world-class technical talent pool, and local community ecosystem, we are committed to facilitating high-impact collaborations and precise resource matching.

This report serves as a crucial resource connecting international builders with established local ecosystems, aiming to accelerate the adoption of Web3 solutions throughout Latin America. We invite all developers, founders, and community leaders to connect and provide feedback to collectively drive regional growth.

How Cryptocurrencies Gain Popularity in Argentina

Argentina's long-standing economic instability

Argentina's economic narrative has been perpetually marked by profound structural instability, with its currency, the Argentine peso, enduring decades of double-digit inflation. This volatility peaked dramatically in April 2024, with inflation soaring to 289.4% year-on-year. However, driven by radical economic reforms (such as "shock therapy") implemented by President Javier Millais' government, both inflation and peso depreciation significantly declined between 2024 and 2025. By mid-2025, the annual inflation rate had fallen sharply, with data released in May 2025 showing a monthly inflation rate of 43.5%.

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Despite the initial success of these reforms, Argentina's economy remains in double-digit inflation, and its fundamentals remain fragile. Continued currency devaluation has severely eroded people's purchasing power and savings. Even more challenging is the fact that the government's strict capital controls and foreign exchange restrictions have historically locked Argentinians out of the ability to protect their wealth through traditional means such as purchasing US dollars.

Cryptocurrencies are becoming a "digital safe haven".

The 2001 "Corralito" crisis was a pivotal historical event that has shaped Argentina's financial landscape. At the time, the government's strict restrictions on bank account access led to widespread distrust among the public of traditional financial institutions and the government's ability to protect private assets.

This historical context is the underlying driving force behind the widespread adoption of decentralized financial instruments such as cryptocurrencies. The memory of past confiscations and interventions of financial assets makes the inherent decentralized and censorship-resistant characteristics of cryptocurrencies not merely technological features for many Argentinians, but a fundamental attraction—they are seen as a reliable barrier against state control and financial erosion. This deep-seated distrust of the traditional financial system has led to the adoption of cryptocurrencies far exceeding the simple need for economic hedging.

In an environment of economic uncertainty and financial constraints, cryptocurrencies, especially stablecoins pegged to the US dollar, have become a vital and practical financial safe haven for millions of Argentinians. These digital assets offer a safer and more efficient alternative to the volatile peso, while replacing the underground currency exchange networks commonly known locally as "cuevas" (caves).

For individuals and businesses, cryptocurrencies offer an asset channel that circumvents direct government control, enabling both cross-border payments and the generation of returns. This shift transforms digital currencies not only into investment tools but also into a fundamental element of daily financial life, empowering the Argentine people to maintain greater autonomy and stability in a challenging economic environment.

Cryptocurrency Adoption Scale and Market Observation

Cryptocurrency holding rate and user activity

Argentina is known globally for its high cryptocurrency ownership and active user engagement. Between 2023 and 2024, approximately 18.9% of Argentinians reported holding cryptocurrency, ranking fourth globally, surpassing Brazil (17.5%) and the United States (15.5%). While other reports show slightly different figures—for example, research from the Central Bank of Argentina indicates nearly 12% of the population held cryptocurrency in 2023, while Triple A data shows 5.6% in the same year—the overall trend indicates a rapid and irreversible acceleration in cryptocurrency adoption between 2023 and 2024.

The statistical discrepancies stem from differences in survey methods and target populations (such as the distinction between the general public and internet users or users of specific exchanges), but the continuously rising trend confirms the widespread penetration of cryptocurrencies in Argentina. In January 2025, Coinbase officially entered the Argentine market after receiving regulatory approval and estimated that approximately 5 million people in the country (out of Argentina's total population of 45.8 million) use digital assets daily, demonstrating a large and active user base.

Platform data also confirms the growing trend in user engagement. Data from Bitso, a well-known Latin American cryptocurrency platform, shows that its user base in Argentina grew by 11% by the end of 2024 compared to 2023. Lemon, the largest platform in Argentina, had nearly 600,000 Bitcoin holders by the end of 2024, accounting for 36% of its assets held in custody in Argentina. Stablecoins accounted for 27%, and the Argentine peso accounted for 18% of the holdings. In terms of trading volume, stablecoin trading volume increased by 44.4%, while Bitcoin and altcoin trading volumes increased by 126% and 158.5%, respectively.

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Similarly, demographic analysis reveals a trend towards a younger and more gender-balanced cryptocurrency community in Argentina. Across Latin America, 38% of cryptocurrency users are between 25 and 34 years old, consistent with global trends. Notably, however, engagement among 18- to 24-year-olds rose from 22% in 2023 to 23% in 2024.

Argentina exhibits a unique social trend in gender participation: the proportion of female users is increasing by three percentage points, reaching 31% in 2024, while the proportion of male users is 69%, slightly higher than the global ratio of 70/30. This increased female participation indicates that the practical benefits of cryptocurrencies, especially as a hedge against economic turmoil, are breaking down gender barriers in traditional finance. This suggests that cryptocurrencies are being seen as a key tool for financial empowerment, and their universality and appeal are transcending the boundaries of different groups.

Market size and activity

Argentina's cryptocurrency market has demonstrated remarkable activity and trading volume. According to Chainalysis data, between July 2023 and June 2024, the country's digital asset trading volume reached nearly $91 billion, a 6.7% increase year-over-year. This strong performance propelled Argentina to 13th place in global cryptocurrency trading volume rankings for 2024.

 ▲ cr. Chainalysis

Although Chainalysis has not disclosed detailed monthly active user data in its public information, the high percentage of cryptocurrency holders (reaching 30% in 2024) and the estimated 5 million daily users indicate that Argentina has a large and highly engaged user base.

Against the backdrop of Argentina's historically informal financial markets and capital controls, the massive trading volume and high adoption rate indicate that a significant portion of cryptocurrency activity is conducted through peer-to-peer channels or decentralized exchanges. This behavior stems from the desire to circumvent the formal financial system and government regulation. This model highlights a deeply ingrained behavioral adaptation: seeking alternative financial channels has become a common strategy for managing wealth and trading.

Digital currencies, primarily stablecoins, adopt

Despite the widespread adoption of cryptocurrencies, it's noteworthy that stablecoins hold an overwhelming dominance in Argentina's cryptocurrency market. Between 2023 and 2024, stablecoin transactions accounted for 61.8% of Argentina's total transaction volume, far exceeding the global average of 44.7%. From the third quarter of 2022 to the second quarter of 2024, 31% of small retail transactions (<US$1,000) in Argentina were completed using stablecoins, a figure second only to Venezuela in the region.

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Argentinians also show a clear preference for certain stablecoins: in 2024, USDC and USDT together accounted for 39% of cryptocurrency purchases, a significant increase from 30% in 2023. Maximiliano Hinz, head of Bitget Latin America, described Argentina as an "abnormal market where many people buy USDT and then don't consider any other options," noting that this phenomenon is not common in other regions.

Argentine users' strong preference for stablecoins stems from several key factors:

Hedging against inflation and currency devaluation: Stablecoins, primarily pegged to the US dollar, provide a crucial and convenient means of hedging against the ongoing volatility of the Argentine peso.
Digital convenience and no purchase restrictions: Before April 2024, Argentinians were limited to purchasing $200 per month, making it difficult for individuals to acquire and accumulate US dollars. Stablecoins, as digital assets, can be used and exchanged on multiple devices and are generally not subject to such restrictions.
High efficiency and low cost: Compared to traditional remittance channels, stablecoins enable faster and more economical cross-border payments.

The "anomaly" of Argentine stablecoins capturing such a large market share signifies a unique behavioral pattern fostered by an extreme economic environment. This is not merely a matter of high stablecoin usage, but also reflects a radical shift in monetary psychology: digital dollar-pegged assets are often more trusted and easier to obtain than domestic fiat currencies or even physical foreign currencies.

Aerial view of Argentina's Web3 ecosystem

Startups and key participants

Argentina has nurtured one of Latin America's oldest and most resilient startup ecosystems, laying the foundation for its burgeoning Web3 space. Buenos Aires, often referred to as the "Silicon Valley of South America," boasts a large number of blockchain companies and has spawned 12 unicorns valued at over $1 billion, demonstrating an exceptional track record in scaling technology businesses.

The Web3 space includes over 40 companies, ranging from native crypto-finance platforms to specialized development organizations:

#Cryptocurrency exchanges, payment and financial platforms (Fintech)

This is the largest and most dynamic sector, primarily driven by the strong retail adoption of cryptocurrencies, especially stablecoins. Key local players include:

Exchanges and wallets: Lemon, Belo, Ripio, Buenbit, Bitso, Tienda Crypto, SimpleFi, Latamex, and DolarApp.
International presence: The market is simultaneously supported by major global exchanges such as Binance, Bybit, and Coinbase.

#Web3 Infrastructure, Development, and SaaS

This field provides the essential tools and services needed to build decentralized applications:

Infrastructure: Hardhat, Sensei Node, Unblock, OpenZepplin, and other organizations and companies.
Development/SaaS: Numerous professional development agencies and studios, including LambdaClass, Wonderland, BootNode, Eryx, Rand Labs, Baghead Labs, Protofire, Wake Up Labs, Fat Solutions, CoinFabrik, DAppsFactory, Diproach, Rather Labs, etc.

#Emerging Fields

Local innovation is extending to more cutting-edge and professional application scenarios such as DeFi, gaming, on-chain governance, and NFTs:

DeFi: Mimic, Kpk, Exactly Protocol, Mountain Protocol, etc.
Metaverse and Games: Notable projects such as Decentraland and Bigtime.
Digital identity and on-chain governance: platforms such as QuarkID, POAP, and Sovra.

The dynamism of Argentine Web3 startups can be summarized as "market validation" and "technology intensity." This dynamism stems from a unique economic environment that has transformed cryptocurrencies from optional speculative assets into essential financial instruments. This urgency has fostered a highly competitive and innovative environment, resulting in a dual advantage: a significant presence in consumer-facing platforms such as exchanges and payments, while possessing strong technological capabilities in infrastructure and innovative decentralized applications (DApps).

Developers and talent pool

Argentina is a powerhouse of technological talent in the region, boasting high-quality, globally competitive developers and engineers, making it highly sought after by companies seeking nearshore outsourcing.

#Talent Scale and Quality

Argentina boasts a strong talent pool, with over 115,000 software developers and training approximately 27,000 new professionals annually. Argentine tech talent is considered highly skilled, often comparable to US standards, and possesses a global perspective. This combination of high-quality talent and cost advantages makes Argentina a highly attractive development and engineering hub.

#Web3 Professional Advantages

Economic turmoil and prolonged inflation have ironically created a unique advantage, driving a generation of developers who are not only technically proficient but also deeply passionate about the potential of blockchain and cryptocurrencies. Developers are showcasing skills in high-demand blockchain languages and frameworks, including Solidity, Rust, Anchor, TypeScript, and Node.js.

Local communities and innovation spaces

The developer ecosystem is highly collaborative, with its core located in Buenos Aires, frequently hosting blockchain events, workshops, and hackathons. Localization is often strengthened through structured educational partnerships, such as with grassroots sports and communities.

#Crecimiento

Core Vision: A global movement dedicated to making Argentina a hub for cryptocurrency and cutting-edge technology innovation.
Key Contributions: Serving as a connecting link, bringing together builders, founders, policymakers, and global partners. Organizing high-impact projects (such as the Aleph Hub series of events) and actively participating in the development of government regulatory frameworks, such as collaborating with the National Securities Commission (CNV) to advance the tokenization sandbox initiative.

#Ethereum Argentina & ETHKipu

Core Vision: To focus on building the Ethereum ecosystem, promoting education, and organizing large-scale events.
Key contributions: They spearheaded important events such as the annual Ethereum Argentina conference and successfully brought the Devconnect conference to Buenos Aires.
ETHKipu focuses on education projects and has successfully integrated Ethereum and Solidity programming languages into the curriculum of a high school in Buenos Aires.

#SEED Org

Core Vision: To drive decentralized solutions through three pillars: governance, community/education, and infrastructure.
Key Contributions: Stabilize the ecosystem by leveraging SEED nodes (infrastructure), conduct community education through the SEED Latin American branch, and promote decentralized decision-making through the SEED governance platform.

#Mujeres en Crypto (MEC) Crypto Women's Organization

Core Vision: To drive diversity, equity and inclusion by empowering women’s participation and leadership in the Web3 ecosystem.
Value Contribution: The organization expands career opportunities for women by hosting events, building communication platforms, and providing industry resources, while also playing a vital role as a core community partner for major international events.

#Cultura C3

Core Philosophy: A passionate technology community dedicated to practicing the values of Creer (believe), Crear (create), and Compartir (share) in the cryptocurrency and Web3 fields.
Value Contribution: Regularly organizes workshops and offline gatherings to share educational content, and frequently collaborates with mainstream groups such as Ethereum Argentina to expand decentralized opportunities from Buenos Aires to places like Córdoba.

This overview is not exhaustive; Argentina's Web3 ecosystem continues to expand, with numerous outstanding local communities and projects actively driving its development. We cordially invite all builders and communities committed to promoting development in Latin America to connect and collaborate.

Investment Trends

Despite the impact of global economic pressures on the Latin American venture capital market in recent years, Argentina's Web3 sector continues to attract significant investment, which tends to focus on the broader fintech category.

Fintech-led Investment: Fintech remains the dominant sector for startup funding in Latin America. Argentina stood out in 2024, with its Buenos Aires-based digital bank Ualá completing a $300 million Series E funding round, setting a record for the largest venture capital investment in the region. This demonstrates investor confidence in large Argentine fintech companies, even those that are not purely cryptocurrency-native.

Web3-specific funding: Cryptocurrency platforms also received investments from well-known venture capital firms at considerable valuations, with fintech and payment-related projects attracting the most attention in the funding rounds.

Argentine cryptocurrency exchange Lemon has successfully completed a $20 million Series B funding round to fund its expansion in Latin America. The round included investments from prominent US funds F-Prime and ParaFi.
Ripio, a leading Latin American crypto service provider, has raised over $50 million in equity funding, including a $50 million Series B round led by DCG in September 2021. Prior to this equity funding, the company successfully raised $37 million in a public offering for its Ripio Credit Network (RCN) in 2017.
DeFi protocol Kpk (formerly karpatkey) disclosed that it raised $7 million in funding in 2024, with investors including Borderless Capital, Wintertermute Ventures, and angel investors such as Joe Lubin and founders of Aave.

While current global venture capital trends indicate increased prudence, emphasizing comprehensive due diligence and focusing more on founder capabilities and product-market fit rather than solely using "Web3" as a selling point, the investment landscape in Argentina's Web3 sector is dominated by fintech and payment platforms. This reflects a market focus on companies addressing the country's severe economic instability and solving financial pain points for its citizens through crypto-financial solutions. Significant capital is flowing into established local exchanges and service providers like Lemon and Ripio to promote stablecoin adoption and cross-border payments.

While the broader fintech sector, including emerging digital banks, has attracted the most funding, technologically complex on-chain infrastructure solutions are also gaining increasing attention, indicating a growing balance in investment strategies: supporting both scalable, consumer-facing financial necessities and the technological foundations for building decentralized ecosystems.

Conclusion

Argentina has undeniably become a core testing ground for the practical application and innovation of Web3 globally. The data speaks for itself: from the overwhelming dominance of stablecoins in transaction volume to their ranking among the top holders of digital assets globally, it is clear that cryptocurrencies are a mechanism for economic survival here, rather than merely a speculative tool.

As the ecosystem driven by world-class developers and a strong local community matures, its development focus is shifting from basic trading platforms to more complex underlying infrastructure, decentralized finance, and cutting-edge on-chain solutions. Looking ahead, the convergence of a mature technological foundation, organically burgeoning user demand, and the focused effect of the 2025 Devconnect conference in Buenos Aires will undoubtedly create unprecedented historical opportunities.

We sincerely invite policymakers, global builders, and investors to view Argentina as a "sandbox" for unlocking the future of finance, rather than simply a speculative market. We call for continued deep collaboration with all stakeholders to unlock greater development potential across Latin America.

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