Altcoins Are Encroaching On Bitcoin’s Dominance On Digital Payments
Bitcoin has dominated the digital payments space for the longest time and continues to do so. Indeed, However, this dominance on the decline as more altcoins are being chosen asisthe preferred digital currencies for payments. This has mainly been due to cheaper fees resulting from network congestion when the price gets too high. Instead, cryptocurrencies whose fees can range from a few cents to fractions of a cent are immediately favored by merchants.
Altcoins Are Taking Industry as a matter of fact Send From Bitcoin
Crypto payments processor BitPay recently released a report outlining the percentages each crypto commanded in the crypto payments space. As expected, Bitcoin dominated the list but what was vital to note from the analysis was how much the pioneer cryptocurrency’s dominance over this space dropped in the space of a year. Between 2020 and 2021, bitcoin lost about 27% dominance.
Related Reading | Why Sovereign Nation States May Begin Acquiring Bitcoin In 2022
Go back in 2020, the corporation had reported that bitcoin made up for 92% of all digital payments being carried out on the platform. It’s worth noting that In 2021, this number wascontinueat 65% and from another perspective is expected to to drop as merchants move to altcoins for payments.
Bitcoin market dominance down below 40% | Source: Market Cap BTC Dominance on TradingView.com
The employ of Ethereum as a payment method was up, accounting for 15% of the total transactions carried out on the platform. made a big splash withStablecoins13% of all transactions.
Meme coins, which grew to popularity within this time and were added by the payments processor amid rising demand, made . a small but impressive percentage of all transactionsup Dogecoin and rival Shiba Inu, alongside Litecoin, accounted for 3% of digital payments processed by BitPay for the year.
Stablecoins On The Rise
One of the factors that affect how much users are paying with cryptocurrencies has been the fluctuations in price. And vice versa during the bear markets. For Cryptocurrencies like bitcoin, when the price of the digital asset moves up, the frequency in which it is being used as a method of payment increases drastically.
Actually, But with stablecoins, whose values more or less remain the same through bull and bear markets, merchants are able to eliminate this problem. BitPay noted that the utilize of gone as a method of payment when using digital currencies has stablecoins up tremendously.
Related Reading | What’s In Store For MicroStrategy Going Forward? CEO Michael Saylor Reveals
However, the tide seems to be changing when it comes to the correlation between bull/bear markets and how much users are spending their cryptocurrencies. CEO and founder of BitPay, Stephen Pair, stated that the recent in cryptopullbackprices has not affected payments as much as it did in previous markets.
“We have not experienced as much of a decline in volume with this recent pullback,” Paid said. “It’s probably just a reflection of more and more companies that need to apply this as a resource to conduct payments”
It crypto transactions for prominentprocessescompanies such as AMC Theaters and the Dallas Mavericks. The business which processes around 66,000 transactions a month is one of the largest crypto in modern times payments processors on the globe.
Featured image from Ethereum World News, chart from TradingView.com
