Global peer-to-peer trading volume across exchanges has declined amid the crypto market crash recently while many exchanges benefited from the recent sell-off. The P2P trade on Paxul decreased by more than 50% this week so let’s find out more in today’s crypto news.
The recent market crash has driven huge trade volumes on centralized exchanges but the global peer-to-peer trading platforms actually saw huge decline inactivity. Latin America is the only region that is confronting this trend. The United States posted a 41% drop in peer-to-peer volume over the past week, crashing from $23.4 million to $13.6 million. Sub-Saharan African region is the second-largest region for P2P trade after North America for this year. The P2P volume of the region fell 32% from $12,9 million to $8.7 million with a 38% crash in Nigerian activity.
Latin America is the only region with a major increase in the P2P trade volume over the past week as it gained 11% to $13.2 million. 43% of the Latin trading sessions took place in Venezuela with the country representing two-thirds of the volume increase that is produced by the region. Peru, Chile, and Colombia posted some increase in volume between 10% and 20% while Brazil and Mexico saw notable drops in trade. Most of the drops in volume were attributed to the top P2P platform Paxful with every region on LocalBitcoins seeing an increase in trading over the week.
According to Chainalysis, many Latin American businesses are using crypto to purchase retail goods while citizens are avoiding fiat markets. The ineffective banking sector in Latin American countries is making many crypto businesses to use cryptocurrency. A large number of transactions are that are taking place in these countries are showing businesses purchasing retail goods from Asian exporters and paying in crypto. The Latin American crypto trading volume, therefore, increases as fiat currency values are crashing. Most of the remittances in fiat currency to Latin America are from the United States from migrant workers that send money back to their families. However, with crypto transactions, Latin America has strong connections to East Asia as the transaction between the two is worth more than $1 billion.
More than $42 million worth of Bitcoin changed hands on LocalBitcoins over the week while Paxful hosted less than $20 million in trading which is a drop of $38 million last week. The spot exchange Coinbase hosted about $1.7 billion in trade over the past week while Bitstamp’s volume was set at $1.1 billion.
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