Bitpay records suggest that BTC use case for payment is reducing

TL; DR Breakdown

• The use of BTC to settle payments in 2021 reduced significantly, according to the latest data from Bitpay, one of the most significant payment companies.
• The dominance of BTC in crypto payments was very notable in 2020 but last year was different since other coins raised the competition.

BTC had one of the most bullish markets in 2021. However according to a recent report by Bitpay its usage in setting payments reduced significantly. Altcoins challenged it and reduced its dominance. Stablecoins have gained popularity among businesses in recent months, increasing competition for BTC.

Bitpay shows that BTC payments are reducing

BTC’s use for digital payments has been reducing since 2020. The data come from Bitpay, one of the most significant payment companies noted that BTC payments for 2021 were significantly lower than in 2020. It explained that BTC’s dominance dropped from 93% to 65%. This drop is by almost a third of the total entry.

The increase in popularity of stablecoins and some memecoins over last year also increased their use in crypto payment. Shiba Inu, one of the most popular memecoins globally, is used to settle payments in over 2 million motels. 

Bitpay also said that 15 % of crypto purchases were done using ETH, while stablecoins claimed a whopping 13%. Other coins like DOGE and SHIB accounted for about 3%.

Crypto Payments are rising parallel to crypto adoption

Even though BTC payments were reduced over last year, crypto payments rose. Bitpay recorded this development and explained that it experienced an increase of about 51% in crypto payments while BTC recorded a drop of about a third. This increase in crypto payments can be associated with the ongoing increase in crypto adoption. The rise in prices of the assets also encouraged many businesses to accept several coins.

Per Bitpay CEO Stephen Pair, their business moves with the crypto markets. They experience an overflow of clients during a bull run, while bear runs come with a significant decline in users. Bitpay is still a young payments company that gives traditional ones like Visa an upper hand.

These companies serve more customers than Bitpay, but Pair believes the tables might turn. He believes the company is still young, but it is perfect for the future market.

He noted that the company is happy with its strategic positioning since its market position is still young. He said that they are confident with their market timing, and the coming years might bring substantial growth to them.

Pair may be right since even traditional companies are transitioning to crypto payments. Last year, PayPal announced that it would start offering crypto payment services this March. It even rolled out its crypto wallet and explained how it works. Only time will tell the impacts of the increasing crypto payments on the market.