Bitcoin traders in Africa are stepping on the gas pedal, with no intention of slowing down anytime soon.
Less than two weeks after recording an absolute record, equals trade volumes at the regional level, Africa has started again. According to data from the useful analytics site Tulips, Bitcoin traders in Africa have traded the equivalent of more than $ 14 million on P2P platforms, such as LocalBitcoins and Paxful.
Bitcoin reading volume in Africa currently exceeds local trade in Latin America, a region often referenced when examining regional volumes among peers.
This volume was higher than last week for Latin America – a region often taken as a reference in terms of trade volume on the p2p and OTC platforms. Just over $ 11 million worth of Bitcoin has been traded via Latin America in the past seven days.
The growth of local commerce seems to reflect an increased interest in cryptocurrency on the African continent. As Decipher recently reported, local inflation rates vary between 4% and 7% year on year and the economic uncertainty resulting from the coronavirus epidemic combined with a generalized economic recession seems to lead an increasing number of African traders to consider Bitcoin as a reserve of viable value
In Latin America, Venezuela remains the largest Latin American BTC market. Although it lost nearly $ 1 million in volume last week, its $ 4.3 million gives it a slight edge over Colombia, which reported $ 4.1 million in transactions during the same period.
But on the other side of the globe, Nigeria has experienced considerable growth, recording more than $ 9.3 million in weekly trade volume, 400% more than South Africa, its closest competitor.
Although it is difficult to determine how local traders behave on centralized exchanges, the volume on P2P platforms is probably much higher in African countries, according to Util 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 a direct relationship with other customers.