Arcane Research: Growth in P2P transactions signals Bitcoin adoption on a global scale

The demand for the first cryptocurrency is rising globally. This view was voiced by Arcane Research analyst Vetle Lunde, based on data on P2P transaction volumes.

The state of the P2P Market — @ArcaneResearch

The P2P market has been an important arena to provide access to bitcoin for traders all over the world, and volume data clearly shows that bitcoin is getting adopted on a global scale.https://t.co/uDNSODnFOR pic.twitter.com/DWH3g3y0n0

— Vetle Lunde (@VetleLunde) October 19, 2020

The expert notes that current P2P activity is far from the hype of 2017. However, weekly figures remain stable in the range of $60-90 million.

The global P2P volume has not (yet) reached the levels of the 2017 hype, but has maintained a strong week by week volume hovering between $60m and $90m since the bull run of 2017. pic.twitter.com/p7jJfXZWPX

— Vetle Lunde (@VetleLunde) October 19, 2020

Lunde notes the success of the Paxful P2P platform over the last five years and attributes it to the growing popularity of BTC remittances.

@Paxful has seen an impressive growth over the last 5 years.

Paxful allows traders to buy and sell BTC using various kinds of payment methods. These methods include among others cash, bank transfers and even gift cards.

A large share of the volume is driven by gift cards. Why? pic.twitter.com/L1mYhgpGCQ

— Vetle Lunde (@VetleLunde) October 19, 2020

The analyst also points to a shift in the market geography. Over five years, the share of activity from Latin America and sub-Saharan Africa has grown. North America’s share has fallen from 53% to 35%.

Over to regional dominance.

This chart clearly show that the adoption of bitcoin has turned global.

5y ago, North America held more than 50% of the volume. Then Europe and Asia joined the party.

Now, SSA and Latin America are highly influential contributors to the P2P volume. pic.twitter.com/MxP7PPGp5j

— Vetle Lunde (@VetleLunde) October 19, 2020

This thread has showed that the bitcoin adoption is spreading and now includes all corners of the world.

If you want to learn more about the state of the P2P market, check out this link: https://t.co/uDNSODnFOR pic.twitter.com/IqHNqhNzxt

— Vetle Lunde (@VetleLunde) October 19, 2020

After the end of the bull run, interest in Bitcoin declined in developing countries. Since then, the share of transactions attributed to economies with developed markets and frontier markets has grown.

The growth in the frontier markets has been striking.

A common trait among the frontier market economies is their dependency on remittances from the diaspora, in addition to a generally more volatile political and financial system. pic.twitter.com/GpDmvOk7Tn

— Vetle Lunde (@VetleLunde) October 19, 2020

Lund**e** cites World Bank data showing that 350 million Africans lack access to financial services. He argues that this has driven the region to become the world’s second-largest contributor to P2P transaction volume.

The SSA is currently the 2nd largest volume contributor in the P2P market.

According to the @WorldBank (2014), 350 million adults of the SSA are unbanked. «Banking the unbanked» has been an important mantra in the crypto community.

Is this what we are witnessing here? pic.twitter.com/3c3DouQwYG

— Vetle Lunde (@VetleLunde) October 19, 2020

Latin America is the third largest contributor to the P2P volume.

The weekly volume has been relatively stable since 2019, showing that there is a sustained demand for bitcoin in the region. pic.twitter.com/47SE1MAoSO

— Vetle Lunde (@VetleLunde) October 19, 2020

Paxful announced the suspension of services to customers in Venezuela due to U.S. sanctions.

In August, Bitcoin trading volumes on P2P platforms in Africa reached record highs. Set new all-time highs in India.

On those days, the global P2P transaction volume metric rose to the levels seen at the end of January 2018.

Subscribe to ForkLog news on VK!