The cryptocurrency bear market has affected how people pay with crypto, but data from BitPay shows that Bitcoin (BTC) remains the primary means of payment despite high volatility.
The share of Bitcoin payments in total BitPay transactions has been declining during the cryptocurrency boom, but it is still the most popular cryptocurrency for payments on the platform.
Sales of Bitcoin-based payments on BitPay were up to 87% last year and fell to 52% in the first quarter of 2022 amid the bear market, Merrick Theobald, vice president of marketing at BitPay, told Cointelegraph. Unlike the number of transactions, Bitcoin sales volumes on BitPay are tied to the total value of crypto payments made in Bitcoin.
Theobald noted that BitPay has noticed an impact on sales volume as stablecoin sales continue to occur regardless of crypto price fluctuations.
From around 58,000 monthly transactions in 2021 to 67,000 in 2022, Theobald stressed that overall BitPay transactions are stable despite the market slowdown.
In relation to sales volumes, the volume of Bitcoin payment transactions has decreased significantly this year. According to data from BitPay, the share of BTC transactions fell from 57% in March to 48% in July.
On the other hand, BitPay users have been paying in other cryptocurrencies such as Litecoin (LTC), as LTC transactions increased from 14 percent in March to 22 percent in July.
Despite a sharp drop in Bitcoin payments amid the bear market, BTC still remains the most used cryptocurrency for transactions on BitPay and accounts for more than 50% of all sales on the platform. According to Theobald, that’s further evidence that Bitcoin’s payment utility use case — first described by BTC creator Satoshi Nakamoto — is still relevant. The boss said:
“People still use BTC on BitPay more than any other cryptocurrency because it is the oldest and most popular crypto, has the largest market share, and has proven to be a great digital payment tool for many years.”
Theobald suggested that some users may prefer to pay in Bitcoin amid the bear market because selling BTC on an exchange can be expensive and they can later use it to buy goods online. “BitPay offers customers a more direct and cost-effective way to purchase everyday goods,” he said.
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BitPay is one of the largest crypto payment companies in the world and allows individuals and businesses to purchase products and services in crypto or accept crypto as payment. BitPay provides crypto payment services to several companies in the US, including Newegg, Verifone and Shop.com. The BitPay platform has gained popularity in the United States for administrative payments and donation campaigns.
The news comes as JPMorgan reports that demand for cryptocurrencies as a payment method has declined over the past six months. JPMorgan’s global head of payments, Takis Georgakopoulos, said the bank is processing far fewer crypto payments, adding that JPMorgan has “very little” interest in such payments.