Bisq DEX Records Highest Ever Bitcoin Transaction Volume Due To LocalBitcoins Banning Cash Trading
Bisq is seeing its volume increasing a lot recently. The company, which is a P2P Bitcoin (BTC) trading network, is getting a lot of new users after Localbitcoins, the largest P2P BTC trading platform in the world, decided to ban cash. The update on the data comes from Coin Dance, a company focused on monitoring crypto markets.
The decentralized exchange (DEX) was formerly known as Bitsquare and it is a decentralized company that serves as the platform for trades that happen without any kind of direct intermediary between the users.
Data goes up to five days ago (June 22). At the latest day, the company handled the total amount of $6.1 million USD. This was the best performance of Bisq up until today, which is a considerable milestone for the expansion of the company.
The two markets that spiked the most recently were the United Kingdom and Brazil, which is currently the second largest country in using the platform.
Localbitcoins Affected Bisq’s Growth
While Bisq has to be congratulated for its efforts, the truth is that most of the traffic actually comes from Localbitcoins and its recent decision to stop accepting cash.
Up until just now, the company accepted trades of crypto from cash, but the option was abruptly discontinued from the site. This probably made several users who wanted to use only cash to decide that they should look for a new platform.
Localbitcoins, which is the biggest platform of its kind, is increasingly concerned about Know Your Customer (KYC) requirements, so they decided to make these changes. As many P2P are very reliant on cash, as the banking system does not help them to make these transactions (what happens in Venezuela and India, for instance), cash options are pretty popular.
This change made Localbitcoins fail to capitalize on the price rise of Bitcoin, which broke the $10,000 USD mark. Obviously, the volume fell across the platform and it reached only $56.4 million USD, a lot more than Bisq, but still less than what Localbitcoins used to have.