Bitcoin trading in the Philippines has risen massively over the past year, as indicated by Paxful data. The P2P trading volume of the asset has jumped by roughly 40% between Q3 2021 and Q3 2022. Currently, the weekly Paxful volume of Bitcoin against the Philippine Peso stands at around 80 million pesos.
Volumes peaked in July 2022, reaching all-time highs that touched nearly 110 million pesos. Q3 2021 saw slightly lower volumes, averaging around 85 million.
Generally speaking, the volumes have been considerably higher and showcase a growing trend of Bitcoin interest in the country. For example, in July 2021, the average weekly volume amounted to roughly 70 million pesos. Twelve months later, that figure was approximately 100 million pesos.
The same story holds for 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 figures are even more impressive.
Back in 2020, weekly trading volumes were around 40 million pesos. The Philippine market has grown substantially since then, similar to the overall trend in Asia.
Inflation leads 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 has reached a 4-year-high. In September 2022, the country recorded an inflation rate of 6.9%. Officials will likely carry out a rate hike, like many other countries.
Philippines Inflation: tradingeconomics.com
Inflation rates have had a profound effect on the adoption of assets like Bitcoin. Venezuela and Argentina are prime examples of this, with citizens turning to Bitcoin on numerous occasions to combat hyperinflation.
The Philippines only behind Vietnam in retail adoption
Interestingly, the Philippines is a country with one of the highest rates of crypto adoption, alongside 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 Philippines market. Binance is considering entering the market, seeing a lot of potential in the region, though the securities regulator cautioned against the exchange. However, there may be some challenges, as the country has decided to block new licenses for three years.