The use of bitcoin as a digital currency for payments has gone down significantly, according to the numbers stemming from Bitpay, one of the leading cryptocurrency payments processors. While most of the purchases were made with bitcoin back in 2020, this dominance has dwindled, opening the space for other tokens and currencies, such as ethereum and stablecoins, to enter the crypto payments arena.
Bitcoin Use for Payments Diminished in 2021, Bitpay States
Bitcoin’s use as digital payments currency has dwindled since 2020. This was the conclusion that Bitpay, one of the leading cryptocurrency-based payment processors, had when reviewing the numbers the market left them last year. Bitpay told Bloomberg that the dominance of bitcoin for purchases in its platform went down from 93% during 2020, to 65% in 2021. This loss of almost a third of its dominance has to do with the entrance of other currencies into the payment arena.
The rise of stablecoins and the popularity that some meme coins enjoyed last year also reached the payments arena, albeit in a small way. Bitpay explained that users of the platform paid with ether 15% of the purchases, while stablecoins accounted for 13% of the payments last year. Other newcomers like shiba inu, dogecoin, and litecoin accounted for 3% of the payments.