LocalBitcoins shuts down after ten years of operation, marking the end of an era.
The well-known Bitcoin exchange, LocalBitcoins, has announced its closure after more than ten years in business. With an annual trade volume of $2.3 billion and more than 8 million customers, the firm catered to a sizable clientele from over 190 different countries.
Reduced Market Share Leads to Closure
The ensuing “extremely cold crypto winter,” the exchange claimed in a statement, has had a major impact on its volume and market share. This is corroborated by data from Coin Dance, which shows a consistent drop in weekly trade volume starting in 2021. Trading volume peaked in the first week of January 2021 at $40 million; by January 2023, it had fallen to $5.7 million, an 85% decrease. With about $130 million transacted, the trading volume on the platform peaked in December 2017.
Final Opportunity to Withdraw Funds
On February 16th, LocalBitcoins will stop trading Bitcoins, and users will thereafter only be allowed to access their wallets to withdraw money over the following 12 months.
Finally, LocalBitcoins’ demise signals the end of an era in the bitcoin trading industry. Despite providing services to millions of users over the last ten years, the site ultimately shut down as a result of the ongoing crypto winter.