In 2021, Bitcoin usage by merchants using BitPay has dropped to around 65%, down from 92% in 2020.
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BitPay Inc., one of the world’s most prominent cryptocurrency payment processors, has seen a shift in the type of digital assets used for purchase in the last year, as reported by Bloomberg. .
According to Bitpay, Bitcoin (BTC) usage at businesses using its payment system last year fell to around 65% of processed transactions, down from 92% in 2020. With this change, Ether (ETH) accounted for 15% of all transactions, while other currencies such as Litecoin (LTC) and Dash (Dash) increased their share.
Businesses have started using stablecoins more often for cross-border payments since November when the value of cryptocurrencies was falling. Consumers have also begun using stablecoins as their value remains constant, resulting in less risk in the notoriously volatile crypto market, according to the report.
The growing popularity of stablecoins has contributed in part to the use of alternative currencies for payments. Dogecoin (DOGE), for example, gained popularity last year as a result of its followers, such as Tesla CEO Elon Musk, who on Friday announced that Dogecoin could be used Used to purchase Tesla-related products.
Related: Retailers to Promote Crypto Payments Acceptance: Survey
The trend shows that individuals are holding Bitcoin rather than spending it. The price of Bitcoin has increased by 60% in 2021, regardless of the volatility of the fourth quarter. According to Bitpay, the majority of crypto transactions last year were in luxury items such as jewelry, watches, and cars.
Whales have never held more bitcoins pic.twitter.com/a9jxAV3Mxp
– zerohedge (@zerohedge) January 16, 2022
According to Stephen Pair, CEO of Bitpay, transaction volumes for luxury items have grown by 31% in 2021 from 9% in 2020. Payment volumes are up 57% across the board in 2021. .