The bear market threatened many crypto users to suspend bitcoin payments as many cryptocurrencies lost their valuations. However, the sentiment of Bitcoin users has not wavered in the slightest. Surprisingly, it has maintained its position as the most used cryptocurrency despite market volatility and lower crypto payout rates.
Bitpay is one of the leading platforms for cryptocurrency payments, exchange and storage. The platform has maintained regular crypto payments in the current bear market, with monthly transaction volumes rising 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 account for more than 50% of Bitpay’s total transactions
According to BitPay, its overall transaction volume has decreased, but Bitcoin remains the most used cryptocurrency for payments on the platform. Merrick Theobald, VP of Marketing at BitPay, made an excellent comment on BTC.
BTC-based payments accounted for 87% of sales in 2021, but dropped to 52% in 2022, he said. Despite the drop in sales, more percent of crypto payments are in BTC.
Theobald further commented on the impact of stablecoin sales. He explained that stablecoin purchases are not subject to crypto volatility and contribute significantly to their sales. In addition, Theobald stated that net BitPay transactions remain fairly stable regardless of market downtime.
While BTC payments remain the most popular, net transaction volumes have declined in 2022. E.g, data Data released by Bitpay shows that its BTC trading volume fell from 57% in March to 48% in July.
On the other hand, payments in other cryptocurrencies have increased significantly. On BitPay, for example, litecoin (LTC) rose from 14% in March to 22% in July.
BTC accounts for more than 50% of BitPay’s total sales. Theobald calls this proof of BTC Practical case Correlation as described by BTC creator Nakamoto Satoshi. He further explained that the increased usage of BTC is because it is the oldest cryptocurrency and is more popular than other cryptocurrencies.
JPMorgan Reports Drop in Demand for Crypto Payments
Theobald further stated that people may prefer BTC payments because it is expensive to sell BTC on exchanges, but it is cheaper to use it to buy items.
BitPay is one of the top cryptocurrency payment platforms in the world and is also known in the US for administrative payments and donation activities. It provides crypto payment services to many companies in the United States, such as Verifone, Shop.com, and Newegg.
The Bitpay report comes as JPMorgan Chase & Co. reported a drop in demand for cryptocurrencies as a payment option over the past six months. Takis Georgakopoulo, global head of JPMorgan Chase, said that banks currently accept crypto payments very rarely.
He further commented that he does not see an increase in demand for crypto payments. However, the entire crypto community is hoping for better results soon.
Featured image Pixabay, Chart: TradingView.com