Bitcoin trading has recovered from the significant drop that it suffered in March of this year. According to UsefulTulips, the volume of Paxful was higher than that of LocalBitcoins in recent days.
In recent days, Bitcoin trading on peer-to-peer (P2P) platforms has reached its highest point since the beginning of 2020. For the first time during that period, the combined trading volume of the LocalBitcoins and Paxful sites exceeded USD 84,000,000.
According to data from UsefulTulips, a site that tracks this type of business, the total of both exchange sites was USD 84,471,629 during the first week of June 2020. The period with the highest trading volume until June 7 was by the middle of May, barely exceeding USD 78,000,000.
The graph shows that there had been a relatively sustained increase since the last week of March when there was the lowest trading volume recorded since 2017. At the end of March, Bitcoin’s trading volume was below USD 50 million.
By contrasting these data with those of Coin Dance, another site that tracks the behavior of these markets, the conclusions that they reach are different from those of UsefulTulips. Coin Dance does not display a combined chart, but the sum of the trading volumes of LocalBitcoins and Paxful that the site reported does not reflect the same total.
The main difference is that UsefulTulips covers the figures closing on June 7th, while those of Coin Dance close the period on June 6th. The difference totals about USD 6 million between both calculations.
Paxful Outperforms LocalBitcoins
Another fact reflected in the data that UsefulTulips shows is that Paxful exceeded the weekly trading volume of LocalBitcoins. According to data from the site, the volume of LocalBitcoins in recent days was slightly higher than USD 41,600,000, while Paxful users traded around USD 43,000,000.
In this respect, the data shown by Coin Dance do not match those of UsefulTulips either. Once more, the difference could be the days comprising the weekly period for each of those sites. According to data from Coin Dance, the difference between LocalBitcoins and Paxful does not even reach USD 1 million.
It is important to remember that the volumes of LocalBitcoins have been decreasing in recent months. Before the general drop in the economy in March, trading figures had already dropped to 2017 levels in November.
One of the reasons could be the growing demand for personal data and documents through the know-your-customer (KYC) policy. For that reason, the volume could be increasing on other sites, such as Paxful, compared to LocalBitcoins.
Recently, there was a controversy that involved LocalBitcoins, in which they decided to freeze customer accounts in various countries, including Latin American countries such as Panama and Puerto Rico.
Latin America has been precisely the third with the highest combined volume in recent days, with more than USD. 11,500,000 traded between both platforms. Regarding the increase in percentage terms between the last week of May and the first week of June, Latin America is second behind the United States.
By Alexander Salazar