According to recent data published by Paxful, a peer-to-peer marketplace, investor interest in Bitcoin in Russia is growing rapidly. It seems that Covid-19 has greatly undermined Russian confidence in traditional finance.
Paxful makes its way to Russia
A press release issued by Paxful indicates that its number of users in Russia increased by 365% between May 2019 and May 2020. The number of visits to the exchange site in this geographical area is also reported to have increased, by a margin of 350% compared to the previous year.
The company would have invested huge financial resources in marketing to challenge the dominance exercised in this territory by LocalBitcoins, the leader in Bitcoin exchanges (BTC) between individuals.
“LocalBitcoins’ largest revenue market is Russia, so Paxful made a strategic growth decision to go to Russia as well,” said Anton Kozlov, Paxful’s Russian market manager.
However, despite a very good track record, Paxful still has a long way to go. According to Useful Tulips data, LocalBitcoins closed this month with a transaction volume of approximately $33 million. Paxful, on the other hand, only reached $419,000, or 1.2% of the figure achieved by its main competitor.