The Strategist

Cryptocurrency operator notes Bitcoin's share in cryptopayments down by a third

01/17/2022 - 10:06

Bitcoin's share of cryptocurrency payments fell by about a third in 2021, a major operator noted.

Jernej Furman
Jernej Furman
Bitcoin's share of cryptocurrency payments will fall by about a third in 2021, one of the largest platforms for such transactions, BitPay, told Bloomberg.

Bitcoin's share of cryptocurrency payments in 2021 was 65%, down from 92% in 2020, Bloomberg reported. People and businesses are more likely to pay with other cryptocurrencies in 2021. Ethereum, the second most capitalised cryptocurrency, accounted for 15% in 2021, while stablecoins, which is pegged to real currencies or commodities, reached 13%. Dogecoin, Shiba Inu and Litecoin, which only appeared on BitPay last year, accounted for 3%.

People and businesses have been more likely to use stablecoins because they are less volatile than other cryptocurrencies: its price, backed by real assets, should not drop much following the collapse of other digital assets. Bitcoin's share of payments could also have fallen as a result of its 40% year-over-year rise in price, Bloomberg suggested: many cryptocurrency owners decided to keep it instead of spending it.

According to BitPay, in 2021, cryptocurrencies were spent on buying luxury goods, jewellery and watches, cars, yachts, and gold. Transactions involving the purchase of premium goods rose to 31% in 2021, up from just 9% in 2020, BitPay CEO Stephen Pair told Bloomberg.