The bear market threatened many crypto users to suspend Bitcoin payments as many of the cryptocurrencies lost valuations. However, Bitcoin user sentiments have not wavered one bit. It surprisingly still retains its position as the most used cryptocurrency despite the market volatility and reduced rate of crypto payments.
Bitpay is one of the leading platforms where payments, exchanges, and storage of cryptocurrency take place. The platform maintains regular crypto payments in the current bear market, and monthly transactions rose from 58,000 in 2021 to 67,000 in 2022.
BitPay recently shared its transaction records, revealing the condition of crypto transactions in 2022.
Bitcoin Payment Constitutes Over 50% Of Bitpay’s Total Transactions
According to BitPay, its total transaction has reduced, but Bitcoin remains the most used cryptocurrency for payments on the platform. Merrick Theobald, BitPay’s vice president for marketing, made an outstanding remark about BTC.
He stated that BTC-based payments accounted for 87% of 2021 sales volume but fell to 52% in 2022. Although the sales volumes dropped, more percentage of the crypto payments were in BTC.
Theobald further commented on stablecoins sales impact. He explained that stablecoins purchases were not affected by the crypto volatility and contributed significantly to their sales volume. In addition, Theobald stated that net BitPay transactions maintain fair stability irrespective of market downtime.
Although BTC payments remain the most popular, net transactions dropped in 2022. For example, the data released by Bitpay shows that its BTC transactions slumped from 57% in March to 48% in July.
On the other hand, other cryptocurrencies’ payments increased significantly. For example, Litecoin (LTC) rose from 14% in March to 22% in July on BitPay.
BTC accounts for over 50% of total sales on BitPay. Theobald referred to this as evidence of BTC’s utility case relevance as described by Nakamoto Satoshi, the creator of BTC. He further explained BTC’s increased use is because it’s the oldest crypto and has gained more popularity than others.
JPMorgan Reports Decrease In Demand For Crypto Payments
Theobald further suggested that people’s preference for BTC payment could be because selling BTC at exchanges is expensive, but using it to buy items is cheaper.
BitPay being among the top global cryptocurrency payment platforms, is also well-known for administrative payments and donation campaigns in the U.S. It renders crypto payment services to many companies in the U.S like Verifone, Shop.com, and Newegg.
Bitpay’s report came while JPMorgan reported decreased demand for cryptocurrencies as payment options in the past six months. JPMorgan’s global head, Takis Georgakopoulo, stated that banks currently accept few crypto payments.