In 2021, BTC had one of the most bullish markets. However, according to a recent Bitpay study, its use in establishing payments has decreased dramatically. Altcoins posed a threat to it, reducing its supremacy. In recent months, stablecoins have grown in favor among companies, boosting competition for BTC.
Bitpay demonstrates that Bitcoin payments are declining. Bitcoin’s use for digital payments has been declining since 2020. According to Bitpay statistics, one of the most important payment businesses, BTC payments in 2021, will be much lower than in 2020. It revealed that BTC’s dominance has decreased from 93% to 65%. This is a decline of about one-third of the total entries.
Stablecoins and several meme coins have grown in popularity over the last year, which has expanded their use in crypto payment. For example, Shiba Inu, one of the most widely used meme coins, can settle payments at over 2 million hotels worldwide.
Bitpay also stated that ETH was used in 15% of crypto purchases, with stablecoins accounting for a shocking 13%. DOGE and SHIB, for example, contributed around 3% of the total.
Payments in cryptocurrency are increasing in lockstep with acceptance
Even though BTC payments have decreased compared to the previous year, crypto payments have increased. Bitpay noted this event, stating that crypto payments increased by roughly 51%, while BTC fell by about one-third. This rise in crypto payments is linked to the growing popularity of cryptocurrency. The increase in asset prices also pushed many companies to accept several currencies.
According to Bitpay CEO Stephen Pair, their company is driven by the cryptocurrency markets. During a bull run, they have an overflow of customers, and during a bear run, they have a major drop in users. Bitpay is a relatively new payment firm that competes with established players such as Visa.
These businesses service more clients than Bitpay, but Pair feels the tide is turning. He believes the firm is still in its early stages, but it is well-suited to the future market.
He stated that the corporation is pleased with its strategic posture because the market is still new. However, he stated that they are confident in their market timing and that the future years might bring them significant growth.
Pair may be correct since even established businesses are shifting to cryptocurrency payments. PayPal stated last year that it would begin offering cryptocurrency payment services in March. It even unveiled its cryptocurrency wallet and described how it works. Only time will tell how increased crypto payments affect the market.