Bitcoin still dominates total payments on BitPay despite the bear market
The cryptocurrency bear market has had an impact on how people pay with crypto, but Bitcoin (BTC) remains an important payment tool despite high volatility, according to data from BitPay.
The share of Bitcoin payments in total BitPay transactions has shrunk amid the ongoing cryptocurrency winter, but it remains the most popular cryptocurrency for payments on the platform.
The sales volume of Bitcoin-based payments on BitPay was as much as 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 Cointelegraph. Unlike the number of transactions, Bitcoin sales volumes on BitPay are associated with the total value of crypto payments processed in Bitcoin.
Theobald noted that BitPay observed a sales volume impact mainly among non-stablecoin purchases as stablecoin sales continued to occur regardless of crypto price fluctuations.
Theobald emphasized that overall BitPay transactions remained stable despite the market downturn, with monthly transactions increasing from around 58,000 in 2021 to 67,000 transactions in 2022.
In line with sales volume, the amount of Bitcoin payment transactions has also been significantly declining this year. According to BitPay data, the BTC transaction share fell from 57% in March to 48% in July.
On the other hand, BitPay users have increasingly paid in other cryptocurrencies such as Litecoin (LTC), as LTC transactions increased from 14% in March to 22% in July.
Despite a massive drop in Bitcoin payments amid the bear market, BTC remains the most commonly used cryptocurrency for transactions on BitPay and accounts for more than 50% of all sales on the platform. According to Theobald, it’s further proof that Bitcoin’s payment tool – the one originally described by BTC creator Satoshi Nakamoto – is still relevant. Exec said:
“People still spend BTC on BitPay more than other cryptocurrencies because it’s the oldest and best-known crypto, it has the biggest market capitalization, and it’s proven over the years to be a great digital payment tool.”
Theobald also suggested that some users may have preferred to pay with Bitcoin amid the bear market because it may be more expensive to sell BTC on an exchange and use it later to buy goods online. “BitPay gives customers a more direct and affordable way to use Bitcoin to buy everyday goods,” he added.
Related: Bank of Russia agrees to legalize crypto for cross-border payments: Report
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 payment. BitPay provides crypto payment services to a large number of companies in the US, including Newegg, Verifone and Shop.com. The BitPay platform has also gained popularity for administrative payments and donation campaigns in the United States.
The news comes amid JPMorgan reporting reduced demand for cryptocurrencies as a payment method over the past six months. Takis Georgakopoulos, JPMorgan’s global head of payments, said the bank has handled significantly fewer crypto payments, and reportedly stated that JPMorgan sees “very little” demand for such payments right now.
