LocalBitcoin Suffers a Massive 30% Drop in Trade Volumes, Even In Low Economic Freedom Areas

Despite the need in lower-income countries that use bitcoin as a hedge against corrupt governments, LocalBitcoins is also experiencing bearish times. But with today's boost in BTC price, it may see volume pick back up.

From the first week of October, LocalBitcoins, a cryptocurrency exchange, could only watch as their trade volumes went into a freefall. At the end of last week, the exchange only saw around $38.49 million in BTC traded, while this may seem high to conventional people, for the finance industry, this is not a good sign.

For LocalBitcoins itself? It’s the lowest trading volume (Measured in USD) since September of 2018. Tallying it up, LocalBitcoins has lost more than a third of its trading volume within a month.

Excluding the trading volume in terms of USD, the number of Bitcoins being traded has dropped even more than the monetary value of it. With only 4,595 BTC changing hands last week, LocalBitcoins is experiencing one of the worst trading weeks in their entire existence. The only time they traded less Bitcoin was back in June of 2013, a year after they started trading altogether.  Compared to last month, where they show trading at 5,344, which means they experienced a hefty drop of 13%.

Most of this diminished trade volume is a direct result of reduced trading activity in both Sub-Saharan Africa and Eastern Europe. These two regions underwent a drop-in activity around 35%-40% in trading volume from the month before. While the Asia-Pacific region constitutes a small part of LocalBitcoins’ trade volumes, the firm still felt the massive 40% trade volume drop that happened in the region.

Digital Gold for the Third World

Interestingly enough, it’s been discovered that LocalBitcoins has a hold on a market niche that very few expected. It’s the most popular in countries with high corruption and low economic freedom. Throughout the 200 plus countries that the platform can serve, the highest trade volume increases were in places like Nigeria, Russia, Columbia, and Venezuela. These countries hold disproportionately high numbers of trade volume, considering its relatively low GDP or population.

Many speculators believe that bitcoin can be considered a “haven asset” due to its properties, so many people from economically unstable countries could see Bitcoin as a way to keep their funds safe. While there are a few issues about this, the most prominent being Bitcoin’s extreme volatility, it hasn’t stopped people from seeing it like that.

Even with this unexpected foothold in the Bitcoin trading market, LocalBitcoins is still falling in trade volumes. The reason for it has less to do with LocalBitcoins and more to do with the world’s bitcoin market slump. Trading volumes on crypto exchanges have been falling across the board. Messari has recently shown some troubling news: Where there was once a trading volume of over $4 billion in Bitcoin, there is now only $200 million. That’s an incredible 5% of what there once was.

Mati Greenspan, a market analyst at eToro, pointed this out on a tweet as well,

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Ali Raza
Ali Raza
A freelance journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali's work has been published on a number of cryptocurrency publications.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi App Aave Creates First Credit Delegation Loan to DeversiFi Decentralized Exchange

DeFi lending platform, Aave completes its first-ever ‘credit delegation’ as DeversiFi borrows over $230,000 without posting collateral. The service agreement was signed on...

Bitcoin Futures Trading at a High Premium; Already Hitting $12,000 on CME

Bitcoin has yet again gained momentum, with people expecting for $12k to hit soon. According to analyst Mati Greenspan, for a sustainable rally, a...

Polkadot (DOT) Launches The First Parachain Implementation Testnet, Rococo

Polkadot introduces parachain functionality with Rococo testnet, a Proof of Authority (PoA) network, allowing users to send direct messages to the Relay Chain and...

Bitcoin Self-Custody Provider Casa Now Allows Users to Buy BTC via Apple Pay

Bitcoin self custody service provider, Casa now allows its customers to buy and hold their own bitcoin. Selling BTC is not supported yet. According...

Four Top Chinese State-Owned Banks Are Testing The Chinese Digital Yuan Project (DCEP)

In an unconfirmed report, four Chinese state-owned banks are gradually testing the ‘digital renminbi’ wallet app and Digital Currency/Electronic Payment (DCEP) system in different...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today