Popular peer-to-peer (P2P) crypto trading exchange LocalBitcoins saw a major decline in Bitcoin (BTC) trading volumes amidst apparent user doubt.

According to information from Bitcoin (BTC) statistics website Coin Trip the light fantastic toe, global Bitcoin trading volumes on LocalBitcoins exchange have touched a seven-year low during the week ending on Feb. 22.

BTC trading volumes drop from 13K bitcoins in Feb 2022 to about 3K in 2022

During the weekly flow, LocalBitcoins traded only iii,144 bitcoins, or around $28 million at press time, which is the everyman weekly trading corporeality since May 2022.

The new historical depression of Bitcoin trading volumes on LocalBitcoins came amid a massive decline since concluding year. As such, LocalBitcoins traded about 13,000 bitcoins per week in February 2022, according to Coin Dance. In comparison, the biggest amount of Bitcoin that was e'er traded in a week on LocalBitcoins accounts for 39,137 bitcoins.

Weekly LocalBitcoins trading volumes in Bitcoin. Source: Coin Dance

Weekly LocalBitcoins trading volumes in Bitcoin. Source: Coin Dance

Trading volumes in USD show a pregnant decline, too

Despite a heavy pass up in BTC trading volumes over the globe, the dynamics are different when the amount is converted to fiat coin, as the price of Bitcoin has seen a major surge since 2022.

Still, LocalBitcoins' crypto trading volumes in USD have notably dropped since 2022, down from an boilerplate $50 one thousand thousand in 2022 to effectually $30 one thousand thousand this year. The all-time high (ATH) of crypto trading volumes in USD was recorded during the calendar week ending on Dec. 23, 2022 — the week during which Bitcoin's price hit the ATC of $twenty,000 — and accounted for $129 meg or vii,519 bitcoins at the fourth dimension, according to Coin Dance.

However, the LocalBitcoins team doesn't appear to be concerned with the recent decline of BTC trading volumes on the platform. Veruska Xavier Filgueira, content and communications representative at LocalBitcoins, outlined to Cointelegraph that the USD volumes on the exchange are like to those that the platform had in early 2022 "on average," adding:

"Some of the book variations are due to the level of action of the Bitcoin market itself simply our service already expected that the regulatory changes that occurred during 2022 would have an impact on the platform. LocalBitcoins is now focused on continuing to provide a relevant and efficient service to its agile and continuously evolving user base of operations and we are optimistic that the platform volition go on on growing with the Bitcoin community."

Weekly LocalBitcoins trading volumes in USD. Source: Coin Dance

Weekly LocalBitcoins trading volumes in USD. Source: Coin Dance

The decline of trading volumes on LocalBitcoins comes amid the backdrop of the apparent uncertainty over its services as the P2P exchange was allegedly quietly suspending some user accounts due to "enhanced due diligence process" in late Jan 2022. Cointelegraph also reported that BTC trading volumes on LocalBitcoins saw a major decline in China, hit the lowest weekly volume in more than two years in Jan 2022.

Cointelegraph asked LocalBitcoins to comment on its seven-year low in Bitcoin trading volumes merely did not receive an firsthand response. This story will be updated should they reply.

Despite the apparent FUD, LocalBitcoins is a regulated commutation as information technology is officially registered equally a virtual currency provider by the Finnish Financial Services Authority. However, some reports claim that LocalBitcoins is purportedly involved in facilitating illicit financial transactions due to insufficient Know Your Customer and Anti-Money Laundering regulation in other locations worldwide.