, Bitcoin continues to dominate total BitPay payments
According to BitPay data, the cryptocurrency bear market had an impact on how people use crypto. However, Bitcoin ( BTC ) continues to be a popular payment method despite its volatility.
Despite the cryptocurrency winter and a shrinking share of Bitcoin payments in BitPay transactions, it is still the most used cryptocurrency for payments.
BitPay’s vice-president of marketing Merrick Thobald stated that the sales volume of Bitcoin-based payments on BitPay was as high as 87% last years and fell to 52% in quarter one of 2022 during the bear market. BitPay’s Bitcoin sales volumes are correlated with the total amount of Bitcoin payments processed in Bitcoin, contrary to the transaction volume.
Theobald pointed out that BitPay saw a decrease in sales volume mainly for non-stablecoin buyers, as stablecoin sales were continuing to occur regardless the crypto price fluctuations.
Theobald stated that BitPay transactions were stable overall despite market declines, with monthly transactions increasing from approximately 58,000 transactions in 2021 to 67,000 in 2022.
BitPay transactions and volumes of crypto sales Source: BitPay
The amount of Bitcoin payments transactions this year has been falling in line with the sales volume. BitPay data shows that the BTC transaction share fell from 57% to 48% in March and to 57% to 48% in July.
BitPay users are also increasingly using BitPay to pay in other cryptocurrencies such as Litecoin ( LTC), since LTC transactions jumped from 14% to 22% between March and July.
Bitcoin dominance in crypto payments. Source: BitPay
Despite the drop in Bitcoin payments during the bear market, BTC is still the most popular cryptocurrency for BitPay transactions and accounts for more than half of all sales. This is yet another indication that Bitcoin’s payment utility case, the one that Satoshi Nakamoto first described, is still relevant according to Theobald. According to Theobald, the exec stated:
People still use BitPay BTC more than any other cryptocurrency because it is the oldest and best-known crypto. It also has the largest market capital and has proven to be a great digital payments tool over the years.
Theobald suggested that users may have preferred to use Bitcoin to pay for goods online, despite the bear market. However, it is more costly to sell Bitcoin at an exchange than to purchase it. He said that BitPay offers customers a direct and cheaper way to use their Bitcoins to purchase everyday items.
Related: Bank of Russia agrees that crypto-cross-border payments will be legalized: Report
BitPay is the largest cryptocurrency payment company in the world. It allows individuals and businesses to purchase products and services using crypto, or accept crypto payment. BitPay offers crypto payment services to a large number of US companies, including Newegg and Verifone. BitPay has gained popularity to facilitate administrative payments as well as donation campaigns in the United States.
This news comes as JPMorgan reports on a decreasing demand for cryptocurrency as a payment option over the past six month. JPMorgan’s global head for payments, Takis Georgakopoulos, stated that the bank is handling significantly fewer cryptocurrency payments. He reportedly said that JPMorgan has “very little” demand right now.
