The bitcoin rate and the total cryptocurrency market capitalization dropped noticeably last week. This led to a sharp drop in trading volume on P2P trading sites.
During significant fluctuations in the rate of cryptocurrencies, trading volumes usually only grow. This is the case for most centralized marketplaces and decentralized exchanges. However, P2P trading platforms reported a drop in trading volumes.
The United States is traditionally the largest region for P2P trading, but last week trading volumes dropped by 42%. If earlier trading volumes for the week were $ 23.4 million, then last week they fell to $ 13.6 million. Trading volumes in Central and South Africa decreased by 32% from $ 12.9 million to $ 8.7 million. In the Asia-Pacific region, this indicator fell by 25%.
At the same time, in two regions, the volumes of P2P trading in bitcoin even increased. We are talking about South America, where the indicator grew by 11%, and the Middle East with 3% growth. Most of the growth in South America was given by Venezuela, where 43% of the region’s transactions were made. Users from Colombia, Peru and Chile also showed an increase in the number and volume of transactions. In Mexico and Brazil, a decrease in trading volume was recorded.
Trading volumes in Western Europe decreased by 15%, but Eastern Europe was practically not affected by this phenomenon – the decline was only 1%. The volume of trades on the LocalBitcoins platform last week amounted to $ 42 million, and on the Paxful platform, deals were made for $ 20 million. The fall was almost 50%. Recall that, as reported in early June, Russian users make the most transactions with bitcoin on the LocalBitcoins P2P platform.