In the year 2024, the cryptocurrency transaction processing service, BitPay, handled approximately 608,000 transactions, reflecting an increasing readiness among owners to use their digital currencies amidst a booming market.
Based on BitPay’s Decrypted 2024 report, Litecoin (LTC) led the charge in transaction volumes on their platform with a total of 201,165 transactions. Bitcoin (BTC) came in second place with 130,250 transactions, and Ether (ETH) trailed behind with 56,356 transactions.
BitPay stated that “2024 emphasized on utilizing cryptocurrency”, indicating that this digital asset isn’t only meant for storage, but also for transactions.
The analysis revealed a robust link between cryptocurrency values and consumer expenditure, as users often sold their digital assets to finance purchases of luxury items, jewelry, electronic devices, and precious metals. Transactions for these products experienced a significant increase, ranging from 39% to 205%, compared to the same period last year.
Across the country, the U.S. handled over 76% of all BitPay payments, leading the pack in transaction volume.
BitPay facilitates crypto transactions for merchants, enabling them to get paid in their preferred local currencies. This company, based in the U.S., primarily serves a customer base within the nation.
Crypto payments growth: A slow grind
While Bitcoin and cryptocurrencies have seen significant growth as investment options, they haven’t gained traction as practical methods for day-to-day transactions compared to other established payment systems.
According to data from Deutsche Bank, as per a report by American Banker, cryptocurrency retail transactions made up approximately 3% of all payment transactions that took place between the years 2021 and 2023.
Interestingly enough, it’s the surge in popularity of stablecoins – digital representations of traditional currencies – that seems to be fueling the expansion of cryptocurrency as a means for transactions.
In the year 2024, CoinGate, a digital currency transaction processor, noted a significant rise of approximately 29.6% in cryptocurrency transactions they handled. Interestingly, over one-third of these transactions involved stablecoins.
In an article published in CryptoMoon Magazine last December, Monty Munford expressed that while centralized stablecoins offer convenience, they actually contradict the core principles of cryptocurrency, which are rooted in decentralization.
According to Mumford, major stablecoins demand significantly more trust from users compared to Bitcoin, yet it appears that users are willing to extend this trust.
At the moment, the combined value of all stablecoins stands at approximately $206 billion, as reported by DefiLlama. It’s important to note that the two largest stablecoins, one issued by Tether and another by Circle, make up almost 89% of this total combined value.
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2025-01-14 20:08