Crypto payments on e-commerce platforms are increasing despite market conditions, Cardano (ADA) and Binance Coin (BNB) entered the top 10 crypto spenders. According to a report from payment processor Coingate, people will use a lot of crypto in 2022.
The report collected data from 2014 and determined that e-commerce stores had received 2.5 million crypto payments during that period. On average, this online store sees around 312,500 crypto payments per year.
In that sense, 2022 set a new record by recording more than three times this number, as seen in the graph below. Online merchants saw 927,294 payments with Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Cardano (ADA), and Binance Coin (BNB) during the period.
Cardano And Other Crypto Take Online Payments
This chart shows the upward trend in how people are using crypto as their preferred payment method. In 2022, the number of crypto transactions will increase by 63%, 2.7 times the average per year in a macroeconomic environment that does not suit the asset.
In the coming years, the trend will continue, and with the rising prices and benefits, crypto payments will become a more popular alternative to traditional counterparts. The report states:
(…) bearing in mind the depth of the bear market that remains, which suggests that the bleeding market should not deter those who want to buy. In fact, it is quite the opposite, because the turnover of traders in 2022 increased by an astonishing 60% compared to the previous year when the crypto market was on the rise (…).
In today’s crypto payment landscape, Bitcoin remains king, accounting for approximately 48% of all transactions processed. This metric is down 7.6% in 2021 and may suffer further losses allowing altcoins like Cardano (ADA) to take over the sector.
Cryptocurrency accounts for 1.1% of total transactions, while Ethereum, Litecoin, and TRON represent more than 20% of full crypto transactions. However, this landscape is susceptible to change in the coming years as more people accept crypto payments.
Why Crypto is the Better Payment Method
Additionally, the report notes that the Bitcoin Lightning Network represents 6.2% of transactions paid in Bitcoin. This number increases from 4.53% in 2021, and is likely to rise on the back of innovation and payment capacity.
The report states the following about Bitcoin Lightning network adoption:
2022 is very good for the Lightning Network as the capacity in BTC has doubled during the year, while the number of nodes has also increased, signaling faster usage. Knowing how much effort in development has been put into this technology, it is unlikely to see the rate of adoption slow down anytime soon.
As a final note on the long-term prospects for crypto payments, payment processors recorded a surge in the number of newly registered merchants in 2022. During this period, online merchants embraced crypto payments to reduce costs and offer better privacy and security features.
As a result, these merchants saw more sales, the report stated. Vaidas Rutkauskas, CEO of IT infrastructure service provider Cherry Servers said the following about the reasons for using crypto payments:
We have integrated crypto payments based on customer needs – most prefer to pay with crypto,” said Vaidas, adding that “customers love the innovation, and we are excited about the opportunity to offer our services to a wider variety. customers. Currently, crypto payments take a large part of our basket, and consistent growth is observed.