Recent trends suggest that Bitcoin peer-to-peer (P2P) trading activity in Kenya is on the rise, breaking new records with Bitcoin still trading for a 6% premium on P2P exchanges like Paxful and Localbitcoins.
According to data shared by Matt Ahlborg, a data scientist and researcher at dlab.vc, the Kenya P2P Bitcoin space activity has grown significantly since the start of 2020.
The data further revealed that the massive adoption of the P2P Bitcoin trading in the country is yielding the traders’ constant high revenue, with an amazing gain of 11% over the last week. Since the price of a P2P trade is relatively higher than Bitcoin spot price on exchanges, sellers trade at a 6% premium with respect to the market prices.
Just like Kenyan traders, Cubans, who turned to cryptocurrency in order to survive sanctions imposed on the country by the US government, use P2P for Bitcoin trading. According to reports, traders in Cuba selling BTC at 10% premium above the global spot prices.
Kenyans bullish on crypto amid COVID-19
The unexpected Coronavirus (COVID-19) pandemic has no doubt destabilized the global economy, leaving millions of people unemployed around the world. With the increased layoffs, people are seeking alternative sources of income to survive the period of the outbreak.
Those in developing and underdeveloped regions are turning to Bitcoin and cryptocurrencies. Since the P2P bitcoin activity allows one to make more gain, traders in developing countries prefer it over spot trading on exchanges.
The data further revealed that peer-to-peer trading volume in Kenya has surged by 190% in terms of USD value. The average weekly volume in the country rose beyond $1 million since last year. Payments for BTC trades are processed via methods like M-Pesa, Chipper Cash, and Bank Transfers.