Stablecoins Flood Argentina After Milei’s Victory: The Crypto Dollar Becomes the Nation’s Pulse

The use of stablecoins in Argentina skyrocketed over the weekend as the country reeled from the unexpected victory of President Javier Milei. Tired of endless peso turbulence, Argentinians rushed to dollar-backed cryptocurrencies to protect their savings from another potential collapse of the national currency.

Panic and Euphoria: Record Weekend Trading Volumes Facundo Werning, former Tether expansion manager and now head of the stablecoin issuer Agora, reported that weekend trading volume between the U.S. dollar and the Argentine peso surged to $13.4 million — a sharp increase compared to normal days. “Argentinians reacted immediately. Many sold pesos as soon as exchanges opened and bought crypto dollars in bulk,” Werning explained. According to financial analyst Santiago Vivanco, the pre-election atmosphere was filled with tension — nobody was holding large amounts of cash in pesos. It was widely expected that if the left-wing Unión por la Patria party won, the peso would plummet. On prediction platform Polymarket, the party’s winning probability reached 55%. The situation escalated further after Donald Trump warned that the U.S. “would not waste time helping Argentina” if Milei lost. As a result, Argentinians rushed to convert their savings into stablecoins — primarily USDT and USDC — to hedge against a possible peso crash.

Milei Boosts Markets: Peso Strengthens, Crypto Dollar Drops Once Milei’s victory was confirmed, markets responded surprisingly positively. The Argentine peso strengthened on Monday morning, while the crypto dollar — which had soared over the weekend — began to decline again. “It’s ironic — people fled to the dollar at first, but once the results came in, the trend reversed,” Werning said.

Record Day for Crypto App Lemon South American crypto platform Lemon announced that on October 27, it recorded the third-highest daily trading volume in its history. The biggest surge came at 9:00 p.m. local time, when election results were announced. “Stablecoins became the mirror of the nation’s mood,” said a Lemon spokesperson. “The crypto dollar is no longer just a hedge — it’s a real-time thermometer of Argentina’s political and economic pulse.” According to Lemon Dashboard data, the peso’s rate against the crypto dollar dropped to 1,572.5 ARS/USD around 2:00 p.m. on Sunday but quickly recovered after the results were confirmed, reaching 1,350 ARS/USD by 10:00 a.m. Monday. This shift, the company noted, reflected an optimistic market sentiment and renewed faith in the country’s leadership.

Three Argentinas, Three Exchange Rates Santiago Vivanco reminded that Argentina doesn’t have just one exchange rate: 🔹 Official Bank Rate – Regulated by the government, but limited to $200 per month per person

🔹 “Blue Dollar” Rate – The more favorable black-market rate offered by street exchangers

🔹 Crypto Dollar Rate – Determined by supply and demand through stablecoin trading, available 24/7 Vivanco emphasized that the crypto dollar never sleeps — while banks and street exchangers close on weekends, stablecoin trading continues nonstop. “That’s why it’s the most accurate indicator of the peso’s real value,” he said.

Peso on the Edge: Record Lows and Hopes for Change Despite Trump’s $40 billion rescue package, the peso hit a record low of 1,491.5 ARS/USD last Friday. However, many economists agree that without Milei’s Libertad Avanza (LLA) party winning the most seats, the situation could have been far worse. “Argentinians are used to uncertainty, but this time, cryptocurrencies became their fastest defense against both inflation and politics,” Vivanco concluded.

One-Minute Summary 🔹 Stablecoin trading volume surged by tens of millions of dollars

🔹 The crypto dollar became the nation’s real-time sentiment gauge

🔹 The peso temporarily strengthened after Milei’s win

🔹 Lemon app saw record-high activity

🔹 Three different exchange rates continue to complicate Argentina’s economy

#Stablecoins , #argentina , #JavierMilei , #USDT , #USDC

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