Analysts at Arcane Research once again brought us an extensive study in which they focused on trading in P2P markets.
Peer to Peer market is a very important factor that affects the liquidity of bitcoins and other cryptocurrencies. This market consists mainly of platforms where advertisements for the purchase and sale of cryptocurrencies are published and subsequently bilateral trades take place.
However, the P2P market has been facing a sharp increase of new competition in recent years in the form of large centralized exchanges, OTC markets and also DeFi exchanges, so let’s look at 2020 and trading statistics.
Currently, the combined trading volume on LocalBitcoins and Paxful is around $ 75m per week. The historically highest volume recorded during the BTC Bull Run was more than $ 140m.
Of all the regions of the world, P2P markets in North America are the most traded.
North America recorded higher weekly volumes in 2020 than during the Bitcoin Bull Run at the end of 2017.
Another region that has seen an increase compared to 2017 and increased trading volume is Sub-Saharan Africa.
In 2020, Sub-Saharan Africa reached an all-time-high in the volume of trading on P2P markets.
The year 2020 was marked by a rapid increase in P2P volumes as the weekly volume doubled from around $ 8m to the current level of around $ 16m. One of the main factors why interest in P2P is growing in this region is economic instability.
Nigeria is the largest volume driver in Sub-Saharan Africa.
Nigeria has the most P2P transactions in the region. Nigeria accounts for 48.5% of the total weekly P2P volume and is currently the second largest country in terms of weekly volume after the US.
North America and Sub-Saharan Africa are the only regions which recorded new ATHs in 2020 and higher value than in previous years.
But let’s also look at other regions
South and Central America is the third largest region, peaking during the summer of 2019 at $ 14m a week.
Asia-Pacific is holding around $ 10m in 2020 and peaked during the bull run in 2017. However, it is currently 66% lower than the ATH achieved.
Western European and Eastern Europe regions saw a sharp increase during the btc bull run in 2017, but have fallen sharply since then, especially in the Western, and have never even approached these values. In terms of dominance in Eastern Europe, Russia has the largest share, holding a substantial majority.
The weakest regions are Australia, New Zealand, Middle East and North Africa. These regions had increased activity only in 2017, but since then the volume has decreased several times and does not show signs of recovery.
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