Altcoins Overtake Bitcoin in Merchant Payments

While companies are increasingly using Bitcoin for payments, a recent analysis suggests that $ETH, $DOGE, and fiat-backed stablecoins are gaining popularity.

According to a Fortune study, cryptocurrency payment processor BitPay claims that merchants are now using Bitcoin at a rate of 65 percent of all payments handled, down from 92 percent in 2020. Ethereum purchases accounted for 15% of the total, while stablecoin purchases accounted for 13%. The survey said that in 2021, newcomers to BitPay, including as Dogecoin, Shiba Inu, and Litecoin, accounted for 3% of all payments.

According to the analysis, crypto investors may have been hesitant to spend Bitcoin in 2021 owing to its enormous price increase, preferring instead for less volatile altcoins and stablecoins. According to BitPay, Bitcoin users spent their riches mostly on luxury items such as jewellery, watches, automobiles, and yachts.

According to BitPay CEO Stephen Pair, transaction volumes for luxury products would increase to 31% in 2021, up from 9% the previous year. Payment volumes on the platform as a whole increased by 57% year over year.

While Pair acknowledged that BitPay’s business “ebbs and flows” in response to changes in the price of cryptocurrency, he said that the current drop has not yet resulted in a major shift in volume. He said that the platform’s increasing reliability is likely a result of “an increasing number of businesses” utilising BitPay to handle payments.

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