Although there is a certain level of regulatory uncertainty around the cryptocurrency in the Philippines, one platform has recorded a massive influx of Bitcoin (BTC) trading activity recently.
Bitcoin trading volumes in the Philippines have been on the rise over the past few months on the major peer-to-peer (P2P) cryptocurrency exchange.
According to data from Bitcoin tracker Coin Dance, Bitcoin trading volumes denominated in Philippine Pesos (PHP) are steadily growing on Paxful and finally reached a new high in July.
Paxful’s Bitcoin trading volumes peaked at PhP 111 million ($1.9 million) during the week ending Saturday, July 9, 2022. This was the largest amount of PHP traded for Bitcoin on Paxful.
Paxful Weekly Bitcoin Trading Volumes in PHP. Source: Coin Dance
The actual amount of Bitcoin traded on Paxful for PHP during that week was 92 BTC, down slightly from the previous week ending July 2.
The notable influx of bitcoin trading began in early May, with bitcoin trading volume doubling over the course of months. As of early May, Paxful’s weekly BTC trading volume in the Philippines is around 40 BTC.
Despite the recent surge in bitcoin trading volumes, the number of bitcoins trading weekly on Paxful in the Philippines still broke the all-time high weekly volume of 111 BTC published in August 2020.
Paxful weekly bitcoin trading volumes in the philippines. Source: Coin Dance
The rise of Bitcoin trading at Paxful in the Philippines began amid a massive downtrend in the cryptocurrency markets, with Bitcoin losing nearly 50% of its value since early May. BTC PHP volumes rose higher on Paxful after Bitcoin tumbled below $19,000 in late June.
The significant growth in PHP/BTC trading on Paxful also came amid weak local currency along with rising inflation. The Philippine central bank is said to decide whether to raise interest rates in mid-August amid inflation expected to grow above 7% by the end of the year from the current 6.1%.
Public sentiment about cryptocurrency adoption in the Philippines has been growing in recent years as well, with many local businesses moving into cryptocurrency trading. In April 2022, Philippine fintech firm PayMaya reportedly launched a crypto feature that allows users to trade, buy, and spend cryptocurrency on their accounts. The company is among the 19 official virtual asset service providers approved by Bangko Sentral ng Pilipinas to provide virtual asset services.
Related: Binance Bans Cards, Philippine Department of Commerce and Industry says
According to Terry Ridon, a local attorney and meeting organizer at Infrawatch PH think tank, the increase in cryptocurrency adoption in the Philippines is a consequence of the COVID-19 pandemic.
Cryptocurrency is becoming more popular in the Philippines as the country has begun switching to digital payment systems during the pandemic. He said in a statement to Cointelegraph that the ease of entering the cryptocurrency markets through various applications also allowed more people to participate in the sector.