According to data from Bitpay, the cryptocurrency bear market has had an impact on the way people pay with crypto, but Bitcoin (BTC) remains a major payment tool despite the huge volatility.
The share of bitcoin payments in total BitPay transactions has been shrinking amid the ongoing crypto winter, but it remains the most popular cryptocurrency for payments on the platform.
The sales volume of bitcoin-based payments on Bitpay was up 87% last year and fell to 52% in the first quarter of 2022 amid the bear market, Bitpay’s vice president of marketing Merrick Theobald told Cryptooshala. Unlike the number of transactions, the sales volume of bitcoins on Bitpay is tied to the total value of crypto payments processed in bitcoins.
Theobald noted that BitPay saw an impact on sales volume primarily among non-stablecoin purchases as stablecoin sales continued to rise regardless of crypto price fluctuations.
Theobald stressed that total BitPay transactions remained stable despite the market downturn, with monthly transactions rising from about 58,000 in 2021 to 67,000 in 2022.
In line with sales volume, bitcoin payment transaction volume has also declined significantly this year. According to data from Bitpay, BTC trading shares dropped From 57% in March to 48% in July.
On the other hand, Bitpay users are increasingly paying in other cryptocurrencies such as Litecoin (LTC), as LTC transactions increased from 14% in March to 22% in July.
Despite the huge drop in bitcoin payments during the bear market, BTC still remains the most widely used cryptocurrency for transactions on Bitpay, making up over 50% of all sales on the platform. According to Theobald, this is further proof that the payment utility use case for bitcoin – originally described by BTC creator Satoshi Nakamoto – is still relevant. Execution said:
“People still use BTC on BitPay compared to other cryptocurrencies because it is the oldest and most well-known crypto, has the largest market cap, and has proven to be a great digital payment tool over the years.”
Theobald also suggested that some users may prefer to pay with bitcoin in the midst of a bear market as it could be more expensive to sell BTC on exchanges and later use it to buy items online. “Bitpay offers customers a more direct and less expensive way to use their bitcoins to purchase everyday items,” he said.
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Bitpay is one of the largest cryptocurrency payment companies in the world, allowing individuals and businesses to purchase products and services with crypto or accept crypto as a form of payment. BitPay provides crypto payment services to a number of companies in the United States including Newegg, Verifone and Shop.com. The BitPay platform has also gained popularity for administrative payment and donation campaigns in the United States.
The news comes amid reports of declining demand for cryptocurrencies as a payment method by JP Morgan over the past six months. Takis Georgekopoulos, global head of payments at JP Morgan, Told The bank is handling significantly fewer crypto payments, reportedly saying that JPMorgan sees “very little” demand for such payments right now.
Credit : cointelegraph.com