Bisq — the increasingly popular decentralized P2P Bitcoin marketplace — has seen its global volumes surge in October, with Monero (XMR) accounting for the vast majority of the volume.
According to CoinDance, Bisq’s global weekly trading volume for Bitcoin increased from approximately $540,000 the week starting 10/13 to nearly $1.7 million the following week 10/20, and then to $2.5 million the week of 10/27. So far, the total trading volume on Bisq for October has surpassed $6 million. Additionally, TheBlock’s research concluded that roughly 89 percent of all volumes in the last three months on Bisq involved Monero.
Monero Surging Amid Developments and KYC Concerns
Monero notably implemented bulletproofs in the latest Beryllium Bullet which has reduced fees and transaction sizes by more than 95 percent. The update vastly improved the efficiency of the network and its popularity as an anonymity-centric cryptocurrency has made it a preference among many users of decentralized exchanges.
Growing KYC concerns relating to centralized exchanges in the U.S. — most recently seen with Shapeshift — is also a potential leading cause of Monero’s surge in use in conjunction with the increased volumes of decentralized exchanges. Many cryptocurrency users are unhappy with the prevalence of KYC integration across the board in fiat-to-crypto exchanges in the U.S. and have resorted to decentralized marketplaces like Bisq despite their drastically smaller volumes.
According to TheBlock, only 17 percent of Bisq’s volumes involved Monero in the last 2 years. Bisq volumes are projected to reach $5 million by the end of the month.
Comparing Bisq To Other P2P Bitcoin Exchanges
The volumes of decentralized P2P exchanges LocalBitcoins and Paxful are comparatively gaining less traction than Bisq, at the moment, despite robust growth over the last couple of years. The lack of correlation between the volumes in LocalBitcoins and Paxful compared to Bisq is likely because Monero is only available for use on Bisq, suggesting that the preference for Monero has a considerable impact on the volume on Bisq.
Altcoins are not available on either LocalBitcoins or Paxful while XMR/BTC is one of the leading trading pairs on Bisq currently. Bisq also places a strong emphasis on security and privacy, routing communication through the Tor network and acting as a non-custodial marketplace with no registration necessary.
Regardless of the surge in volume on Bisq this month, the volumes of Bisq and other decentralized exchanges continue to be dwarfed by centralized exchanges. Coinbase’s total USD trading volume may have dropped to a one year low but still remained at approximately $10 billion in Q3 2018. Further, Binance’s USDT volume fell by nearly 50 percent in Q3 2018 — compared to its Q1 2018 peak — but still reached $106.2 billion.
As the KYC landscape continues to unfold in step with looming regulations for the cryptocurrency industry, the proliferation of decentralized exchanges — particularly Bisq — will offer an intriguing measurement for community sentiment on KYC and privacy.