The bear market threatened to suspend bitcoin payments to many crypto users as many cryptocurrencies lost valuations. However, sentiment among Bitcoin users has not wavered. It surprisingly still holds its position as the most used cryptocurrency despite market volatility and falling crypto payment rates.
Bitpay is a leading platform for payment, exchange and storage of cryptocurrencies. The platform maintains regular crypto payments in the current bear market with monthly transactions increasing from 58,000 in 2021 to 67,000 in 2022.
BitPay recently shared its transaction records, revealing the state of crypto transactions in 2022.
Bitcoin payments constitute more than 50% of Bitpay’s total transactions
According to BitPay, its total transactions have decreased, but Bitcoin remains the most used cryptocurrency for payments on the platform. Merrick Theobald, BitPay’s Vice President of Marketing, had an outstanding comment about BTC.
He said that BTC-based payments accounted for 87% of sales volume in 2021 but fell to 52% in 2022. Although the volume of sales decreased, a higher percentage of crypto payments were in BTC.
Theobald commented further on the implications of the stablecoin sale. He explained that stablecoin purchases were unaffected by crypto volatility and contributed significantly to their sales volume. Additionally, Theobald said that transactions on NetBitPay maintain fair stability regardless of market downtime.
Although BTC payments remain the most popular, net transactions have declined in 2022. For example, Information A release by Bitpay shows that its BTC transactions fell from 57% in March to 48% in July.
On the other hand, payments for other cryptocurrencies have grown significantly. For example, Litecoin (LTC) on BitPay rose from 14% in March to 22% in July.
BTC accounts for over 50% of total sales on BitPay. Theobald cites this as proof of BTC Utility case Relevance as described by Satoshi Nakamoto, the creator of BTC. He also explained that the increased use of BTC is because it is the oldest crypto and has gained more popularity than others.
JPMorgan reports declining demand for crypto payments
Theobald also suggests that people may prefer BTC for payments because it is expensive to sell BTC on an exchange, but cheaper to use it to buy items.
BitPay is one of the leading global cryptocurrency payment platforms, it is also well known for administrative payments and donation promotion in the US It also provides crypto payment services to many companies in the US such as Verifone, Shop.com and Newegg.
Bitpay’s report comes as JPMorgan says demand for cryptocurrencies as a payment alternative has declined over the past six months. JPMorgan’s global head, Takis Georgakopoulo, said that banks currently accept few crypto payments.
He also commented that he doesn’t foresee demand for crypto payments growing yet. However, the entire crypto community expects a good outcome soon.
Featured image Pixabay, Chart: TradingView.com
