Record-Breaking Week on Paxful
Paxful, the peer-to-peer Bitcoin marketplace, has outdone itself with an astonishing achievement. For the week ending November 23, it reportedly reached close to $30 million in P2P Bitcoin trades, setting a new record in weekly volume. CoinDance data shows this soaring trend is not a fluke but a robust pattern that has been building since Paxful launched.
Paxful vs. LocalBitcoins: A Tale of Two Platforms
In the ongoing struggle for P2P supremacy, Paxful is clearly in the driver’s seat right now. While LocalBitcoins—a stalwart in the P2P crypto scene—has experienced significant fluctuations, Paxful has maintained a steady trajectory since its inception. Just to spice things up, Paxful facilitates trades in 70 different fiat currencies and processes around $20-25 million in trades per week throughout 2019.
A Closer Look at LocalBitcoins
LocalBitcoins, on the other hand, peaked during the cryptocurrency bull run in late 2017, but its numbers have since seen a downturn. Although it hovered in the $40-60 million weekly range for a time, recent months have painted a different picture, with trades consistently dipping below $40 million.
Paxful’s Unique Offerings
What sets Paxful apart from its competition? The marketplace allows users to buy and sell Bitcoin using various payment methods, including gift cards, PayPal, and bank transfers. Among these options, retail-branded gift cards are particularly popular, with Amazon cards taking the crown as the top choice, followed closely by eBay, Steam, and iTunes gift cards. So if you’re looking to trade Grandma’s unwanted holiday gifts for some sweet, sweet Bitcoin, Paxful’s got you covered!
Emerging Competitors and Market Dynamics
The competition is heating up for LocalBitcoins, especially with the emergence of LocalCryptos, which is expanding its horizons by introducing Bitcoin support Alongside Ether (ETH). On top of that, LocalBitcoins has faced criticism for registering with authorities in Finland, which could alienate users who prefer the privacy of pseudonymous transactions.
Meanwhile in the Centralized Exchange Realm
Major players aren’t resting on their laurels either. Coinbase is making strides in the crypto gift card market, offering customers a way to swap their coins for e-certificates. And just when you thought it couldn’t get any more intriguing, Japan’s Amaten is stepping into the game by issuing tokenized gift cards with blockchain technology through Aelf. Talk about innovation!
