The year 2022 and its series of scandals have raised fears of reduced cryptocurrency usage. But when buying goods and services, this was not the case, according to CoinGate’s latest report. Cryptocurrencies have never been used so frequently in this context.
Cryptocurrency purchases exploded in 2022
Payment provider CoinGate report shows that cryptocurrency purchases have continued to grow strongly since 2017. While customers made an average of 312,500 purchases per year, That number has increased to 927,294 in 2022. This is particularly notable given that this share had stopped growing during the last “crypto winter” of 2020:
Evolution of the number of cryptocurrency purchases for each year
That means the particularly gloomy atmosphere that prevailed in 2022 wasn’t enough to end the appeal for these still relatively new payment methods. So this testifies a fundamental consolidation of the industry :
“This equates to a payment processed by CoinGate every 34 seconds. It is impressive […] and it shows that bleeding markets aren’t necessarily stopping people from making lots of purchases.»
In total, The number of cryptocurrency purchases increased by +60% in 2022. According to the report, VPN, VPS, and hosting providers saw the most purchases.
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Bitcoin continues to reign supreme
Palmost half of these purchases were made in bitcoin (48%), although this share tends to decline in favor of altcoins. USDT is the second most used cryptocurrency (14%), followed by Ether (10%). The report notes the rise of the Tether stablecoin, suggesting that this type of cryptocurrency is gaining traction.
On the merchant side, CoinGate is also seeing renewed interest. The number of registered companies increased by +48% in 2022. This is partly because payments are instantly transferred to fiat, so service providers don’t have to worry about price fluctuations, which was very important this year.
Hence a particularly optimistic conclusion from CoinGate:
“Cryptocurrency Payment Adoption Growth Is Not Slowing Down, but it actually accelerates.»
Of course, this report is only based on a payment manager, but it does suggest payments are a sector that has been little affected by the bear market. That seemed to be the case from 2022 as well: Markets suffered, but underlying interest rates fell less than expected.
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