While many centralized exchanges have benefited from the recent market downturn, P2P trading on Paxful has decreased by almost 50% this week.
Decline in activity on P2P platforms
The recent crash in the cryptocurrency market has fueled huge volumes of trading on centralized exchanges. However, peer-to-peer (P2P) platforms have seen their activity drop sharply. Latin America was the only region to break the trend.
The best region for P2P trading, the United States saw a 42% drop in volume 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 volume there fell by 32%, from approximately $ 12.9 million to $ 8.7 million. This was mainly due to a 38% drop in activity in Nigeria.
Trade in the Asia-Pacific region also declined this week. The volume in this region fell by 25%.
Latin America was the only region to see a significant increase in P2P volume this week. Trade on the continent grew 11% to $ 13.2 million.
43% of all Latin American transactions for this week were in Venezuela. The country is responsible for two-thirds of the volume growth generated by the region. Colombia, Peru and Chile also saw volume gains from 10% to 20%, while Mexico and Brazil saw significant declines.
Interestingly, almost all of the volume drop was attributed to the Paxful P2P platform. Every region on Localbitcoins (except Sub-Saharan Africa, which lost 2%) saw a volume increase.
On Localbitcoins last week, they changed hands of Bitcoins worth around $ 42 million. Paxful, on the other hand, processed transactions worth just 20 million. Last week it was 38 million.
The declines also affected the number of ETH whales
Data from Santiment’s analysts showed that the number of investors with ETH 1,000-10,000 – $ 350,000-3.5 million at the time of writing – has increased by 68 in three days. The increase in the number of whales also took place after the massive recent declines. Increased network constraints are believed to have caused the recent Ethereum dump.