The recent recession in the cryptocurrency market has resulted in huge trading volumes on central exchanges, but peer-to-peer (P2P) trading platforms are already seeing a sharp decline in activity.
Latin America was the only region that resisted this trend.
In the largest P2P trading region, the United States, peer-to-peer trading volume is down 42% this week, from $ 23.4 million to almost $ 13.6 million.
Sub-Saharan Africa was the second largest P2P trading region after North America for much of 2020. P2P trading volume fell 32% from approximately USD 12.9 million to USD 8.7 million, driven by a 38% decline in activity in Nigeria.
Trade in the Asia-Pacific region also fell 25% this week.
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Latin America was the only region to see significant growth in P2P trade last week, which rose 11% to $ 13.2 million.
Venezuela accounted for 43% of Latin trade this week, accounting for two-thirds of the region’s growth. Colombia, Peru and Chile also recorded volume increases of 10% to 20%, while Mexico and Brazil experienced significant setbacks.
Ironically, much of the volume decline was attributed to the higher-end P2P platform Paxful, where every region of Localbitcoins (except sub-Saharan Africa, which recovered 2%) actually increased circulation on a weekly basis.
Nearly $ 42 million in Bitcoin (BTC) was traded on Localbitcoins last week, while Paxful placed less than $ 20 million in trading – up from around $ 38 million last week.
In contrast, the largest trading exchange Coinbase has invested almost $ 1.7 billion in the last seven days, and Bitstamp’s weekly trading volume was $ 1.1 billion.