Paxful is challenging the king of peer-to-peer Bitcoin trading platforms LocalBitcoins for the throne. Paxful has continued to baffle with its trading volume which has been consistently going up since 2015. On the other hand, LocalBitcoins’ trading volume has dwindled since 2017 highs.
Paxful is a P2P Bitcoin trading platform that connects buyers and sellers. Much like LocalBitcoins, Paxful doesn’t get involved in the nitty gritties of the payments in the way centralized exchanges like Binance do. Instead, it allows buyers and sellers to handle their own payments. It supports bank transfers, mobile payment solutions, credit card payments and other payment processors.
The platform has been on an uptrend for the past five years.
Paxful hit its record weekly volume in November this year, registering $29.8 million in the week that ended on November 23. However, the most impressive thing has been that since 2015, Paxful’s weekly volume has been rising. This is despite the 2018 crypto winter that hit the market. In 2018, even the largest crypto exchanges such as Binance and Coinbase registered reduced volumes. Many smaller exchanges even went out of business or had to lay off many of their employees in light of reduced income.
A Game of Thrones
For LocalBitcoins, it hasn’t been so rosy. The volume peaked in 2017 but since then, it has gone down considerably. The fact that it has continued to introduce privacy-disabling measures has only hurt its market more. And then there’s the issue of LocalCrypto, formerly known as LocalEthereum. Previously, it was focused on Ethereum purely. However, it rebranded and included BTC as well. This has further eroded the market share for LocalBitcoins.
Despite this, it still leads the market, averaging $35 million in weekly trades of late. For how much longer it shall remain in the lead is anyone’s guess, with Paxful looking like a genuine contender for the throne.
So, why has Paxful not been affected by the winter as much? The answer could simply be Africa. Paxful focuses on Africa, a region where crypto isn’t as prone to price effects. Even during the 2018 crypto winter, Paxful added 800,000 new wallets from the continent. The future looks bright for Paxful, and Africa too.