Crypto payments on e-commerce platforms are booming despite market conditions. A few high-volume altcoins like Cardano (ADA) were among the most popular payment methods in 2022, according to a new report from payment processor Coingate.
According to the report, Cardano was the most used online payment method in 2022
The Coingate report, which collected data for 2014, determined that e-commerce stores received 2.5 million crypto payments during this period. On average, these online stores receive around 312,500 crypto payments per year.
In this sense, 2022 broke a new record by more than three times this figure, as seen in the chart below. During this period, 927,294 payments were made with Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Cardano (ADA) and Binance Coin (BNB).
The chart from the Coingate report shows that people are increasingly adopting crypto as a payment method. In 2022, the number of cryptocurrency transactions increased by 63%, 2.7 times the annual average in an unfavorable macroeconomic environment for these coins. In addition, expectations are that this trend will continue to expand in the coming years. With rising prices and benefits, crypto payments are becoming a more popular alternative to their traditional counterparts. The report includes the following details:
…given the depth of an ongoing bear market, which suggests that bleeding markets are not deterring people from going on a shopping spree.
The most used cryptocurrencies in e-commerce payments
In the current crypto payment landscape, Bitcoin continues to lead with around 48% of all transactions processed. This metric is down 7.6% in 2021, allowing altcoins like Cardano (ADA) to take over the industry, giving way to other alternatives.
Cardano accounted for 1.1% of total transactions, while Ethereum, Litecoin and TRON represented more than 20% of all crypto transactions. However, these rates may change in the coming years as more people adopt crypto payments.
Why is crypto the better payment method?
The report also noted that the Bitcoin Lightning Network represents 6.2% of transactions paid in Bitcoin. This number started to increase from 4.53% in 2021 and continues to increase thanks to more innovation and payment capacity. cryptocoin.comIn this article, we have included what you need to know about the Lightning Network.
As a final note on the long-term outlook for crypto payments, the payment processor recorded a sharp increase in the number of new users in 2022. In this era, online merchants are adopting crypto payments to reduce costs and offer better privacy features and security. This opens the door for greater use of technologies such as the Bitcoin Lightning Network. The report includes the following regarding the adoption of the Bitcoin Lightning network:
2022 was great for the Lightning Network, as capacity in BTC doubled over the year, while the number of nodes increased, signaling rapid adoption of its use. Given how much effort went into developing this technology, it’s unlikely to see its adoption rate slowing any time soon.