Bitcoin traders in Africa are feet on the accelerator and have no intention of slowing down anytime soon.
Less than two weeks after recording an all-time high, Pear to pear trade volumes at regional level, Africa has done it again. According to data from the analysis site Useful Tulips, bitcoin traders in Africa have exchanged the equivalent of over $ 14 million across P2P platforms, such as LocalBitcoins and Paxful.
Bitcoin read volume in Africa is currently outpacing local trade in Latin America, a region often referenced when examining regional, peer-to-peer volumes.
This volume was higher than last week’s figure for Latin America – a region often taken as a reference in terms of trading volume on p2p and OTC platforms. Just over $ 11 million worth of Bitcoin has been traded through Latin America in the past seven days.
The growth in local trade appears to reflect increased interest in cryptocurrency within the African continent. As Decrypt recently reported, local inflation rates fluctuate between 4% and 7% year-on-year, and the economic uncertainty associated with the coronavirus outbreak coupled with a widespread economic recession appears to be prompting a growing number of African traders to consider Bitcoin as a viable store of value
In Latin America, Venezuela is still the largest Latin American BTC market. Despite losing nearly a million dollars in volume in the past week, it gives $ 4.3 million slightly ahead of Colombia, which reported $ 4.1 million in trades in the same period.
But on the other side of the world, Nigeria saw significant growth, with a weekly trade volume of over $ 9.3 million, 400% more than South Africa, its biggest competitor.
While it’s difficult to determine how local traders behave on centralized exchanges, the volume on P2P platforms is likely to be much higher in African countries, according to Useful Tulips founder Matt Ahlborg.
In an interview with the On the edge podcast, Ahlborg explained that Latin Americans and Africans prefer P2P trading because it reduces commissions and allows for a direct relationship with other customers.