According to BitPay, the share of altcoins and stablecoins in payments for goods and services increased in 2021, while the share of Bitcoin fell. 

Bitcoin's Popularity as a Payment Medium is Dropping

Bitcoin’s share of total BitPay payment system transactions fell in 2021 from 92% to 65% compared to 2020. This statistic is provided by Bloomberg, citing internal BitPay data. 

Customers have become more active in using Ethereum and stablecoins as a means of payment, with turnover rising to 15% and 13%, respectively. In 2021, BitPay made it possible to use DOGE, SHIB and LTC tokens — the total volume of transactions involving them was about 3%.

Experts explain the falling popularity of BTC as tender in 2021 by a number of reasons: 

  • a 60% increase in the price and the transition to its active accumulation; 
  • the growing popularity of stablecoin for cross-border payments due to its low volatility; 
  • the surge in popularity of Dogecoin and Shiba Inu.

In addition, BitPay analysts pointed to the growth of luxury purchases from 9% in 2020 to 31% in 2021. BitPay’s services process approximately 66.000 crypto transactions per month. 

Author: Alex Golovakha