Bitcoin P2P trading volume jumped 40% in the Philippines in the past year
P2P Bitcoin trading volume in the Philippines has increased by 40% year-on-year. High inflation rates may be behind the trade.
Bitcoin trading in the Philippines has increased massively in the past year, as indicated by Paxful data. P2P trading volume for the asset has jumped approximately 40% between Q3 2021 and Q3 2022. Currently, the weekly Paxful volume of Bitcoin against the Philippine peso is around 80 million pesos.
Volumes peaked in July 2022, reaching all-time highs reaching nearly 110 million pesos. Q3 2021 saw slightly lower volumes, averaging around 85 million.
In general, the volumes have been significantly higher and show an increasing trend of Bitcoin interest in the country. For example, in July 2021, the average weekly volume was about 70 million pesos. Twelve months later, this figure was approximately 100 million pesos.
The same story applies to the 1-year periods between August and September, with September 2022 also showing notable peaks in weekly trading volume. Compared to a few years ago, the numbers are even more impressive.
Back in 2020, weekly trading volumes were around 40 million pesos. The Philippine market has grown significantly since then, in line with the general trend in Asia.
Inflation drives Filipinos to BTC
As for why Filipinos are turning to Bitcoin and crypto, it could be because of the high inflation rates in the country, which have reached a 4-year high. In September 2022, the country recorded an inflation rate of 6.9%. Officials are likely to implement a rate hike, like many other countries.
Philippines Inflation: tradingeconomics.com
Inflation rates have had a profound effect on the use of assets such as Bitcoin. Venezuela and Argentina are good examples of this, with citizens turning to Bitcoin on several occasions to combat hyperinflation.
Philippines only behind Vietnam in retail adoption
Interestingly, the Philippines is a country with one of the highest rates of crypto adoption, along with Vietnam and India. It ranks behind only Vietnam, with an overall score of 0.753 according to Chainalysis’ Global Crypto Adoption Index. P2E games are particularly popular in the Philippines.
Meanwhile, exchanges are trying to break into the Philippine market. Binance is considering entering the market, seeing a lot of potential in the region, although the securities regulator warned against the exchange. However, there may be some challenges, as the country has decided to block new licenses for three years.
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