Bitcoin’s dominance in cryptocurrency payments appears to be waning. Both individuals and businesses are now using other cryptocurrencies to make cross-border payments, Bloomberg writes, citing cryptocurrency payment provider BitPay.
According to the company, the share of payments in Bitcoin to merchants using the BitPay service fell to about 65% in 2021, while in 2020 it accounted for 92% of all payments. Ethereum payments accounted for 15%, while stablecoins accounted for 13%. Recently added to the BitPay ledger, Dogecoin, Shiba Inu, and Litecoin tokens accounted for the smallest payments at just 3%.
BitPay believes that the decline in bitcoin’s share of payments is partly due to consumers choosing to use stablecoins while other cryptocurrencies became cheaper. This may also be due to users’ reluctance to spend Bitcoin as the price is expected to increase throughout the year.
According to BitPay, its customers have used the cryptocurrency to buy luxury items, including cars, jewelry, boats, watches and even gold. In 2021, the service’s luxury goods business grew to 31% from 9% in 2020, while total payments grew 57% year over year. BitPay’s revenue is up 50% over the past year.