Paxful, the Bitcoin P2P exchange, prepares to beat LocalBitcoins in volume
The Bitcoin Peer-to-peer (P2P) Paxful market has recently reached a record high in weekly trading volume. As of December 2, CoinDance data reveals that during the week of November 23, Paxful saw about USD 30 million in P2P Bitcoin operations, continuing a steady upward trend since the beginning of the platform.
Paxful overcomes the LocalBitcoins trend
Paxful is an over-the-counter P2P platform that connects users who offer to buy and sell Bitcoin through gift cards, Paypal, national bank transfers and other payment methods.
As a decentralized and non-custodial service, Paxful allegedly sees Bitcoin operations denominated in 70 different national fiat currencies and has seen operations worth between USD 20 and 25 million (weekly) for much of the year 2019.
While Paxful has reported a consistent upward trend since 2015, LocalBitcoins.com data – a veteran name in the P2P crypto trade space – has seen a more unstable arc with volume peaks reported largely during crypto winter 2017.
Despite this, the volume of LocalBitcoins remained generally in the range of USD 40-60 million (weekly) during much of the 2018-2019 period, although in the last months there has been a decrease with levels below USD 40 million in October and November.
As noted, one of Paxful’s market niches is the exchange of commercial brand gift cards for Bitcoin: the platform site reveals that Amazon gift cards are currently the most popular, followed by eBay, Steam and iTunes.
The LocalBitcoins competition
As reported, LocalBitcoins has seen its market share challenged as its rival LocalCryptos -before LocalEthereum- announced that it would add support for Bitcoin along with Ether (ETH).
LocalBitcoins has also been criticized for its intention to register as an official provider of virtual currencies with the regulators of its country of origin, Finland, alienating users who expect to transact pseudonymously.
Centralized exchange alternatives and tokenized gift cards
As Cointelegraph reported in July, the important US cryptocurrency and centralized exchange Coinbase has also entered the crypto gift card market, allowing customers in certain countries to exchange currencies for electronic brand certificates.
In August, Japan’s largest gift card platform, Amaten, revealed that it would begin issuing tokenized gift cards in partnership with the blockchain network provider Aelf.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.