Trading volume on peer-to-peer bitcoin marketplace Paxful has surpassed the $5 billion mark with over six million users.
A press statement from the platform indicates that monthly trading volume growth is at an average of 15% amid the ongoing bitcoin rally. The company notes that as of April 2021, most trading occurred in Nigeria, China, the U.S., India, and Kenya.
According to Paxful co-founder and CEO Ray Youssef, most interest is from countries where traditional finance does not meet people’s needs. According to Youssef :
“We’re on track for a 20%+ increase in volume this year. We’re seeing growth in all our markets and especially among groups or in countries where there’s a real need for cryptocurrencies: where the traditional financial system is failing people, whether that’s because of extreme volatility, strict capital controls, or high transaction costs. People are looking for freedom from these constraints, and they find that in cryptocurrencies.”
Besides bitcoin, the platform allows the trading of Ethereum.
Pandemic inspires more growth
As of July 2020, Paxful attained a trading volume of $4.6 billion, with users surging to over 4.5 million. Youssef noted that the growth was mainly due to the coronavirus pandemic as bitcoin remained resilient.
Paxful 2021 growth reflects other companies involved in cryptocurrency, with bitcoin surging to record levels.
This year alone, the asset has surged by at least 90%, recording an all-time high of $64,800 on April 2021.
The bitcoin growth is mainly due to the entry of institutional investors into the sector. Notable traditional firms to enter the space include electric vehicle manufacturer Tesla (NASDAQ: TSLA), PayPal (NASDAQ: PYPL), and Visa (NYSE: V).