That volume number is misleading. A lot of trades are arranged by localbitcoins.com, but do not use their wallet, but simply go P2P. Those don't get counted towards volume.
Are there any volume estimates available for Localbitcoins? I really suspect whether their volumes are as large as Mt Gox and BTC-E. Most of the large traders stay away from Localbitcoins. It is mostly used for low volume trades.
Do you have a source for this? What do you consider a "large trrader"? I see one guy near me who is offering to exchange $10000 cash for bitcoins or bitcoins for cash, does that count as a large trader?
I suspect 'no' in the scheme of things. It's not a big trade to me as a relative 'old timer', and is pretty small-time relative to trades on semi-functional exchanges. It is, however, an amount that I would feel comfortable putting at risk in one transaction albeit with certain realistic safeguards. But my risk tolerance is low. As is my tolerance for being screwed which pisses me off more than hurts me (or would if it were to happen.)
Localbitcoins is distinctly unappealing to me due to the hassle factor and relatively low value potentials. Or was last I looked. This is in part due to my physical location however. People willing to do this USD value purchase via cash in the mail did exist when I was looking around some months ago, but wanted a significant premium and wanted me to take the risk. I ended up going with Coinbase which has been working out for me so far. I also had good luck with Bitcoin-Brokers.org when I used them.
