Bitpay Statistics Show the Use of Bitcoin for Payments Is Dwindling

According to Bitpay, one the most prominent cryptocurrency payment processors, bitcoin’s use as a digital currency has fallen significantly. Although most purchases were made using bitcoin in 2020, the dominance of this currency has diminished, opening up the possibility for other currencies and tokens to join the crypto payments market.

Bitcoin Payments are a Diminished in 2021. Bitpay States

Since 2020, Bitcoin’s popularity as a digital payment currency has declined. Bitpay, a leading cryptocurrency-based payment processor, came to this conclusion after reviewing the data the market provided last year. Bitpay stated to Bloomberg that bitcoin’s dominance in the platform for purchasing was down from 93% in 2020 to 65% by 2021. The entry of other currencies into this payment market has caused a loss of nearly a third of its power.

Stablecoins’ popularity and some meme coins’ popularity last year reached the payments market, though in a limited way. Bitpay explained that 15% of purchases were made with ether, while 13% of payments were made last year using stablecoins. Others newcomers such as shiba Inu, dogecoin and litecoin made up 3% of payments.

In general, Crypto Payments are Rising

Although bitcoin (BTC), which is used to make payments, saw a decrease in 2021, its use for payment has remained steady. Bitpay’s total payments in 2021 saw a 51% increase year-over-year. This is due to the popularity of cryptocurrency and the increase in market prices last year. Stephen Pair, Bitpay CEO, stated that this is the reason:

Our business fluctuates with the price. People tend to spend less when the price is lower. This pullback has not caused a significant drop in volume.

Bitpay is a well-known crypto payment company that has large sales volumes and is well-known. However, it is still far behind traditional payments companies such as Paypal and Visa. To Pair, however, the field is still young and the company has a great future. He declared:

Strategically, we like the place we are. This area is still young. It all comes down to timing. We are likely to experience significant growth in the next few years.

Some traditional companies have also entered the cryptocurrency payments market. Paypal announced that it will begin processing cryptocurrency-based payments in March.