Cryptocurrency purchases explode in 2022 despite the bear market The year 2022 and its series of scandals have raised fears of reduced use of cryptocurrencies. But when it comes to purchases of goods and services, that has not been the case, according to CoinGate’s latest report. Cryptocurrencies really have […]
Cryptocurrency purchases exploded in 2022 despite the bear market
The year 2022 and its string of scandals have raised fears of reduced use of cryptocurrencies. But when it comes to purchases of goods and services, that has not been the case, according to CoinGate’s latest report. Cryptocurrencies have never been used so much in this context.
Cryptocurrency purchases exploded in 2022
The report from payment facilitator CoinGate shows that cryptocurrency purchases have continued to grow strongly since 2017. While customers made an average of 312,500 purchases annually, this figure increased to 927,294 in 2022. This is particularly noteworthy, because during the last “cryptocurrency winter” in 2020, this share had stopped growing:
Progression of the number of cryptocurrency purchases for each year
This means that the particularly gloomy atmosphere that has dominated 2022 has not been enough to erase the attraction for these still relatively new payment methods. This then testifies of a fundamental consolidation of the sector :
“This corresponds to a payment processed by CoinGate every 34 seconds. It’s impressive […] and demonstrates that hemorrhaging markets don’t necessarily stop people from making a lot of purchases.»
In total, the number of cryptocurrency purchases increased by +60% in 2020. According to the report, VPNs, VPS and hosting providers had the most purchases.
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Bitcoin continues to reign supreme
Pnearly half of these purchases were made in Bitcoin (48%), although this share tends to fall in favor of altcoins. USDT is the second most used cryptocurrency (14%), followed by Ether (10%). The report notes the rise of the stablecoin Tether, which suggests that this type of cryptocurrency is becoming increasingly important.
On the merchant side, CoinGate is also seeing renewed interest. The number of registered entities increased by +48% in 2022. This is partly because payments are instantly transferred to fiat, which allows service providers not to have to worry about price volatility, which has been very prominent this year.
Hence a particularly optimistic conclusion from CoinGate:
“The growth in cryptocurrency payments adoption isn’t slowing down, but it actually accelerates.»
This report is obviously only based on one payment processor, but suggests that payments they are a sector little affected by the bear market. This is also what seemed to emerge from 2022: markets suffered, but underlying interest fell less than expected.
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