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Wrong
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Why do you say that? Seems pretty active to me.
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It peaked in 2024 when Paxful was closed by US and they have been selling compliance basically. Before LocalBitcoins and LocalCryptos went offline. Bisq conducted protocol overhaul and I didn't even checked it out but it always had weak order book and I don't expect it improved by releasing Bisq2. Binance p2p... Well all, US 3 letter agencies now sitting on Binance.
The only good thing is Robosats but... There is ongoing war on cash and even Amazon gift cards require KYC nowadays. And we don't have anything really disruptive for years in Bitcoin. Unfortunately there are really good ZK projects in Ethereum but not on Bitcoin.
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How is ZK relevant here?
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Here's project that leverages Venmo https://github.com/zkp2p/zk-p2p/tree/develop/circuits-circom here's more generic email related project that may work with any payment provider sending notifications via email. https://github.com/zkemail/zk-email-verify
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You may surprize but it is used for example for generating proofs from emails Stripe sends or other payment provider. Basically fiat payment proof.
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