Crypto Payments Trends 2021 vs 2022 - The Top 5 Coins You Should Be Accepting and Why | CoinPayments

Crypto Payments

Trends

2021 vs 2022

The Top 5 Coins

You should be accepting and why

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With the creation of Bitcoin in 2009,

However, what is happening in 2022?

a radical new way of making payments

How is the crypto payments market

emerged before our eyes: with

evolving compared to 2021? What

decentralized digital currencies not

cryptocurrencies do customers use

controlled by any government, called

to pay in stores? What digital currencies

cryptocurrencies.

do merchants want to receive for their

Since then, the development of this new

goods and services?

form of payment continues to be

In this article, we will answer all these

exponential, being accepted by large

questions, sharing charts and reports

corporations such as Microsoft, Etsy,

based on CoinPayments data.

Twitch, PayPal, Whole Foods, and even between countries.

We will also show the 5 most used cryptocurrencies in transactions made

The entry of Bitcoin as legal tender in El

through our crypto payment gateway,

Salvador, along with other important

comparing the results of 2021 and 2022

projects in the crypto ecosystem, made

to see their evolution.

2021 the year when cryptocurrencies became mainstream. As a result, interest in crypto payments has increased exponentially, both from big companies and small merchants around the world.

At the end of the article, you will learn firsthand where cryptocurrency trends are moving, and you will understand why you should accept these digital currencies in your business.

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The growth of crypto

payments from 2021 Throughout 2021, the crypto payments

group of customers who want to pay

sector has seen a major evolution. As

with crypto.

you will see below, CoinPayments' data shows that more and more people want to spend their cryptocurrencies in the same way they use their fiat currencies.

At the same time, both large brands and

As a result, more merchants are integrating crypto payments into their businesses, which are processing more volume and transactions with cryptocurrencies.

small merchants are capturing this new

TOTAL NUMBER OF CRYPTO TRANSACTIONS PER MONTH — JANUARY 2021 TO MARCH 2022 32.52%

17.92%

If we consider the total number of transactions processed by CoinPayments in 2021, we have had a slight decrease of 17.92% since the beginning of the year.

However, if we include the data for the first months of 2022 up to March, we

can see how the number of transactions has increased by 32.52% since January 2021.

Total volume figures are on the same trend, both in 2021 and in the first quarter of 2022.

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TOTAL VOLUME PER MONTH—JANUARY 2021 TO MARCH 2022 99.98% 44.67%

Despite month-on-month variations from

consumers and businesses, seems

the beginning to the end of 2021, the total

to be shifting from being an asset class—

volume processed by our platform has

similar to gold or bonds—to being

increased by 44.67%.

a currency to spend.

And if we take into account the first

Companies are moving quickly toward

quarter of 2022, this growth rises to

this new reality, using solutions such as

almost 100% (99.98% to be exact).

CoinPayments gateway to facilitate

That is, from January 2021 to March 2022,

payments with crypto.

the volume processed in crypto payments

Now, which cryptocurrencies are

by CoinPayments doubled, confirming

merchants accepting? Which coins

that the crypto payments are on the rise.

do consumers prefer to pay with?

The general perception of

Let our data speak for itself.

cryptocurrencies, among both

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Top 5 cryptocurrencies used for payments in 2021 and 2022 We have compared our total volume

However, let's take a look at the

and the number of transactions

comparative charts for both periods.

performed in two periods: Q1 2021 and Q1

This will give us an overview of how each

2022.

currency has performed, both in terms

In both periods, and throughout 2021, the most commonly used cryptocurrencies for payments by consumers are

of volume and number of transactions.

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TOP 5 COINS USED FOR PAYMENTS Charts in terms of total volume(in %) Q1 2021 to Q1 2022

Note: “Other coins” refers to a mix of other cryptocurrencies used for payments. For more information, check out the list of all supported coins on CoinPayments.

Q1 2021 (% TOTAL VOLUME)

Q1 2021 (% TOTAL VOLUME)

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TOP 5 COINS USED FOR PAYMENTS Charts in terms of TOTAL NUMBER OF TRANSACTIONS(in %) Q1 2021 to

Q1 2022

Note: “Other coins” refers to a mix of other cryptocurrencies used for payments. For more information, check out the list of all supported coins on CoinPayments.

Q1 2021

Q1 2022

(% TOTAL NUMBER OF TRANSACTIONS)

(% TOTAL NUMBER OF TRANSACTIONS)

After seeing the general data of the 5 most used cryptocurrencies in payments, let’s have a look and analyze each coin separately to see how it has performed between the two periods.

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Facts about the Top 5 Coins You Should Be Accepting in Your Business

About Bitcoin (BTC) Designed by the pseudonymous Satoshi

Its revolutionary properties, as well

Nakamoto in early 2009, Bitcoin is

as its leadership in terms of market

a peer-to-peer electronic cash system

capitalization, have made it the most

whose currency is bitcoin (BTC), the first

widely used cryptocurrency for

cryptocurrency in history.

payments for more than a decade.

It is a type of currency based on blockchain technology, 100% digital, divisible, fungible and scarce (as there will only be 21 million bitcoin in existence).

A censorship-resistant asset that can be sent, received and stored without depending on third parties, such as governments or central banks.

At least, it has been so until 2021.

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Volume of Bitcoin payments In the first quarter of last year, Bitcoin accounted for almost three-quarters of the total volume processed by our platform (exactly 74.1%). However, at the beginning of 2022, it has reduced its position to 35.6%, which is almost a third of the total volume.

% TOTAL VOLUME — Q1 2021

% TOTAL VOLUME — Q1 2022

In a single year, its share of our total transacted volume has dropped 38.5 percentage points. This shows how Bitcoin is maintaining a downward trend and losing its largely dominant position in recent years.

% TOTAL VOLUME — Q1 2021-Q1 2022

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Number of BTC transactions The same applies if we analyze the number of transactions made with Bitcoin in the last year. % TOTAL TRANSACTIONS — Q1 2021

% TOTAL TRANSACTIONS — Q1 2022

At the beginning of 2021, BTC represented 53.6% of all cryptocurrency transactions on CoinPayments. This percentage has been reduced to 30.2% during the first quarter of 2022.

% TOTAL TRANSACTIONS — Q1 2021-Q1 2022

However, in spite of this 23.4% drop in the number of transactions, Bitcoin remains among the top 5 most used coins for crypto payments in 2022.

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Bitcoin (BTC) in brief

Everything suggests that customers have decided to stop spending

their precious and scarce Bitcoin in favour of other

cryptocurrencies

more akin to their well-known fiat currencies, such as Tether.

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About Tether (USDT) Launched as RealCoin in July 2014 and

Tether was specifically designed

renamed 4 months after, Tether (USDT)

to provide the necessary bridge

is the most popular of the so-called

between fiat currencies and

stablecoins: cryptocurrencies whose aim

cryptocurrencies, offering stability,

is to keep their market valuation stable.

transparency, and minimal transaction

Tether belongs to the group of

costs to users.

stablecoins collateralized with fiat

For this reason and for being one

currency. Specifically, a Tether token is

of the pioneers of its kind, Tether has

pegged to the US dollar and maintains

become not only the #1 stablecoin on

a 1:1 ratio with the dollar in terms of value

the market but also the preferred

(1 USDT = 1 USD). This is possible thanks

cryptocurrency for payments.

to its reserves, which are a mix of cash, secured loans, US Treasury bills, and other investments.

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Volume of Tether payments USDT went from representing more than a tenth of the total volume at the beginning of 2021 (10.4%) to accounting for almost half of CoinPayments' transaction volume in the first quarter of 2022 (46.7%). % TOTAL VOLUME — Q1 2021

% TOTAL VOLUME — Q1 2022

This represents an increase of 36.3% of the total volume managed on the platform. Average growth of 9% per month has led to it displacing Bitcoin as the cryptocurrency with the highest volume transacted on the platform in 2022.

% TOTAL VOLUME — Q1 2021-Q1 2022

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Number of USDT transactions These figures are linked to the number of transactions made with this stablecoin, which has increased from just 4.1% of transactions in Q1 2021 to 35.3% in Q1 2022 (8.6 times more). % TOTAL TRANSACTIONS — Q1 2021

% TOTAL TRANSACTIONS — Q1 2022

Apart from a significant rise in the number of transactions, what we can also observe is that this increase occurred mainly during the last quarter of 2021 and the first quarter of 2022.

% TOTAL TRANSACTIONS — Q1 2021-Q1 2022

As the bar chart shows, Tether went from accounting for 20% of all transactions in Q4 2021 to 35.32% in Q1 2022.

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Tether (USDT) in brief The figures show a trend change in both merchant acceptance of this specific cryptocurrency and consumer payment preference.

Where Bitcoin used to take up the vast majority of transactions and volume, it now seems that more customers prefer to pay with the stablecoin Tether.

Despite this, there are also many others who prefer to pay with other cryptocurrencies, such as Ethereum.

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About Ethereum (ETH) Conceived by Vitalik Buterin in 2013 and

For several years this cryptocurrency has

launched by him in collaboration with

been the second largest cryptocurrency

Gavin Wood in July 2015, Ethereum is a

in market capitalization after Bitcoin

decentralized blockchain-based

(and just ahead of Tether, the third). For

software platform that enables smart

this reason and its multiple possibilities,

contracts.

it remains one of the 5 most used

Ethereum allows any type of decentralized application (dApp) to be built and programmed on it: from decentralized organizations (DAOs) to financial services (DeFi), non-fungible tokens (NFTs), games, and many more.

For this purpose, it also has its native token, the Ether (ETH), which serves both to interact with Ethereum applications and to be stored, sent, or received as payment for goods and services.

currencies in crypto payments.

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Volume of Ethereum payments At the beginning of 2021, ETH accounted for 10.3% of the total volume registered on CoinPayments, virtually equal to Tether (USDT) at 10.4%. % TOTAL VOLUME — Q1 2021

% TOTAL VOLUME — Q1 2022

However, unlike what has happened with the stablecoin, which has grown exponentially, ETH has slightly reduced its position in total volume, registering at 7% (a 3.4% decrease).

% TOTAL VOLUME — Q1 2021-Q1 2022

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Number of ETH transactions In terms of the number of transactions made with ETH during the first quarter of 2021, the token was the second most used, only behind Bitcoin, with 17.1% of total transactions. % TOTAL TRANSACTIONS — Q1 2021

% TOTAL TRANSACTIONS — Q1 2022

In the same period of 2022, ETH accounted for 13.3% of all transactions made on CoinPayments (3.8% less than in 2021), falling to 4th place in our top 5 coins.

% TOTAL TRANSACTIONS — Q1 2021-Q1 2022

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On the other hand, if we look at the bar

When the network is not saturated, the

chart we can perceive a curious pattern:

price of making transactions remains

the number of transactions goes up and

affordable. However, when the number

down from quarter to quarter. This may

of transactions on the network increases

be due to the variable price of gas: the

considerably, the price of gas skyrockets,

fee to be paid for making transactions on

making it considerably more expensive

the Ethereum network.

to make a payment with ETH.

Ethereum (ETH) in brief

Despite this, ETH remains among the top 5 most used cryptocurrencies for crypto payments in 2022. However, due to this instability in the fees for paying with ETH, many consumers prefer to pay with other coins such as Tether, Bitcoin, or even Litecoin.

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About Litecoin (LTC) Founded in 2011 by a former Google

This last property allows making

engineer named Charlie Lee, Litecoin

payments in LTC 4 times faster than

(LTC) is a peer-to-peer electronic

with BTC, being one of the

cash system that was born from

compelling reasons why Litecoin

a fork of the Bitcoin blockchain.

is among the 5 most used

Both projects are very similar. In fact, in essence, and explained by its own creator, Litecoin is a “lite version of Bitcoin” and its native currency, the LTC, “a currency that is the silver to Bitcoin's gold”.

Nevertheless, Litecoin differs from Bitcoin in some details such as the maximum supply of coins (84 million, versus Bitcoin's 21 million) or a higher transaction processing speed (2.5 minutes versus bitcoin's 10 minutes).

cryptocurrencies in crypto payments in 2022.

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Volume of Litecoin payments

In terms of total volume, it is far behind the other currencies mentioned above. Even so, its

volume has grown in the last year.

In the first quarter of 2021, LTC accounted

for only 2% of the total volume. One year later, it

has almost tripled its share, accounting for 7.5% of the total.

% TOTAL VOLUME — Q1 2021

% TOTAL VOLUME — Q1 2022

Its highest volume growth occurred in 2021. From January to December of last year, Litecoin

increased its volume 2.69 times, as the bar chart shows. However, during the first quarter of

2022, it has slightly reduced its position.

% TOTAL VOLUME — Q1 2021-Q1 2022

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Number of LTC transactions Along the same upward trend are LTC transactions, which have risen from 9.5% of the total in early 2021 to 13.5% in Q1 2022 (a 4% increase). % TOTAL TRANSACTIONS — Q1 2021

% TOTAL TRANSACTIONS — Q1 2022

Now, although the trend in 2021 is upward, the number of transactions made with LTC has declined so far in 2022: from 17% in Q4 2021 to 13.45% in Q1 2022 (a decrease of 3.5%).

% TOTAL TRANSACTIONS — Q1 2021-Q1 2022

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Litecoin (LTC) in brief

Overall, the use of Litecoin for crypto payments has not only been maintained but has grown compared to the previous year.

We will have to wait for future months to see how it performs, but all indications are positive that it will continue to remain among the top 5 most used currencies in CoinPayments.

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About Dogecoin (DOGE) If Litecoin was a fork that emerged from

However, against all odds, Dogecoin has

the Bitcoin blockchain, Dogecoin (DOGE)

been gaining popularity in the crypto

is a fork that emerged from the Litecoin

community and as a means of payment.

blockchain.

Among its biggest supporters are

Launched in December 2013 and created

personalities such as Elon Musk, Snoop

by software engineers Billy Markus and

Dogg, Mark Cuban, or Jake Paul, and

Jackson Palmer, Dogecoin is the first so-

companies like the Dallas Mavericks,

called meme coin.

SpaceX, AMC Theaters, or Newegg

Its creators decided to create a payment

accept it as a payment method.

system as a joke, making fun of Bitcoin

Dogecoin has proven that it is not a joke

and the wild speculation on

but a serious project, remaining one

cryptocurrencies in 2013. In fact, its name

more year in our top 5 cryptocurrencies.

and logo come from a popular meme at the time that used the deliberately misspelled word “doge” to describe a Shiba Inu dog.

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Volume of Dogecoin payments

In terms of transaction volume, DOGE represents the smallest of the 5 most used cryptocurrencies in payments. In the first quarter of 2021, DOGE was handling only 0.9% of total volume, a figure that dropped by more than half one year later to 0.4% in early 2022. % TOTAL VOLUME — Q1 2021

% TOTAL VOLUME — Q1 2022

Its highest record was in Q2 2021 when it accounted for almost 1.5% of total volume. However, since that quarter a considerable decline can be noted.

% TOTAL VOLUME — Q1 2021-Q1 2022

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Number of DOGE transactions In terms of transactions, it is interesting to mention that at the beginning of 2021, more payments were being made with DOGE than with LTC, and especially compared to USDT, the cryptocurrency with the highest number of transactions at this moment.

10.2% of all transactions made on CoinPayments during the first quarter of 2021 were made with DOGE, versus 9.5% of LTC or 4.1% of USDT.

Much has changed in the first quarter of 2022, where it has been relegated to fifth place with only 3.9% of the total transactions. % TOTAL TRANSACTIONS — Q1 2021

% TOTAL TRANSACTIONS — Q1 2022

Despite the decline, so far in 2022 more transactions are taking place in DOGE than in the previous two quarters, confirming its slight rise since mid-2021.

% TOTAL TRANSACTIONS — Q1 2021-Q1 2022

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Dogecoin (DOGE) in brief

Regardless of the reduction in both volume and number of transactions compared to the previous year, Dogecoin remains one of the top 5 most used cryptocurrencies in crypto payments.

And taking into account the number of companies that accept it as a means of payment, everything indicates that it will become more important over time.

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About other coins The “other currencies” group includes all those cryptocurrencies which are used to make payments, but whose total volume does not represent individually more than 1%.

Among many of them, the most representative coins in this group are Bitcoin Cash (BCH), Binance Coin (BNB), Velas (VLX), Ripple (XRP), and other stablecoins such as BUSD, USD Coin (USDC) or TrueUSD (TUSD).

You can check all CoinPayments' supported coins on this link: https://www.coinpayments.net/ supported-coins

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Payment volume in other coins Together, these cryptocurrencies accounted for 2.2% of the total volume registered on CoinPayments at the beginning of 2021, slightly ahead of Litecoin (2%) and Dogecoin (0.9%). In the first quarter of 2022, this group's volume rose slightly to 2.8% of total volume, surpassing only DOGE (0.4%). % TOTAL VOLUME — Q1 2021

% TOTAL VOLUME — Q1 2022

However, this slight increase of only 0.6% in one year does not represent what happened quarter by quarter, as can be seen in the bar chart.

% TOTAL VOLUME — Q1 2021-Q1 2022

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If we only take into account the last 3 quarters of 2021, we see that this group accounted for between 5% and 8% of the total volume. One of the reasons for this rise could be the increase in popularity of other stablecoins, related to the huge growth of Tether (USDT) as a means of payment.

These figures are very different from those found in the first quarters of both years (2.21% in Q1 2021, and 2.82% in Q1 2022, respectively).

Number of transactions in other coins During the first quarter of 2021, this group of mixed coins accounted for 5.5% of all transactions conducted on CoinPayments, collectively surpassing the stablecoin Tether at 4.1%.

But just as what happened with the volume transacted, the number of transactions made by this set of currencies decreased slightly at the beginning of 2022, representing only 3.7% of the total. % TOTAL TRANSACTIONS — Q1 2021

% TOTAL TRANSACTIONS — Q1 2022

Excluding the second quarter of 2022, the trend for transactions in other currencies outside our top 5 is downward.

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% TOTAL TRANSACTIONS — Q1 2021-Q1 2022

Other coins' performance in brief

Data shows that both customers and merchants prefer to use more

established cryptocurrencies in the market, such as the ones in our top 5.

Even so, and despite the downward trend, it seems likely that there will

continue to be a niche for those who want to pay with other digital

currencies in the future.

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Data in a nutshell Below, we are going to summarize in 7 points the most important facts about the 5 most used cryptocurrencies for crypto payments.

Bitcoin loses its crown

BTC has lost strength compared to the rest of the top coins used for payments, especially in favour of USDT.

Nevertheless, despite the significant decline, it remains the second most used currency on CoinPayments, both in terms of volume and number of transactions.

Tether takes power

Tether (USDT) has become the big winner so far in 2022, increasing its position to reach the top 1 most transacted currency on the platform.

That shows the preference of merchants and customers for stablecoins, especially USDT.

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D , the union that makes strength

DOGE keeps barking

Between BT and SDT together they

volume and the lowest number of

account for 2.

transactions among our top 5.

BTC & US

T

s

C

8

and

.

65 5%

U

3%

of the total volume

of the number of transactions

made in early 2022.

Dogecoin is still the coin with the lowest

However, due to its growing popularity within the community and its recent

This illustrates the prevailing willingness

acceptance in large businesses, it is

of merchants to accept payments mainly

possible that 2022 could be a good

in these two cryptocurrencies.

year for this cryptocurrency.

Ethereum gives up its seat

Other coins are not forgotten

ETH has lost ground as a currency for crypto payments compared to the

Among the rest of the cryptocurrencies

previous year, possibly due to high

outside the top 5, the trend shows that

and volatile fees on its own network.

customers prefer to pay with more solid

However, it still remains one of the most widely used cryptocurrencies in commerce.

and established digital currencies such as Bitcoin, Tether, Ethereum, Litecoin, or Dogecoin, all of them with over 8 years in the crypto market.

Litecoin, exponential increase

Still, year after year, customers continue

Along with SDT, LT has been one

to continue through 2022.

U

C

of the winners of 2022, almost uadrupling q

its volume in a single year

.

This shows that Litecoin is also chosen by thousands of merchants as a good currency for crypto payments.

using other coins to buy goods and services, something that seems likely

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Join the trend

of accepting crypto payments in your business It is no longer a secret to anyone:

Brands such as Gucci have already

cryptocurrencies are becoming more

taken the step to accept crypto this

and more established as a means

year, and other major players such

of payment globally, both among

as Airbnb, eBay, Amazon, and Uber have

companies and in countries.

already hinted that they will do so in the

While in 2021 El Salvador was the first

near future.

country to accept Bitcoin as legal

All this data shows the rise of

tender, so far in 2022, a second country

cryptocurrencies as a means of

has already joined the trend: the Central

payment, largely thanks to the benefits

African Republic.

they bring to users, companies, and

Small and large companies alike are headed in the same direction.

According to a study* conducted

by Visa, 25% of small businesses in 9 countries plan to accept crypto payments by 2022.

countries.

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Advantages you should not miss Increase your brand awareness.

Save money on fees.

The mere fact of accepting

add a 2%-4% surcharge, while crypto

cryptocurrencies raises your brand's

payments with CoinPayments only

visibility for free.

add 0.5%.

Reach more customers.

Avoid chargebacks and “friendly fraud”.

More and more people are taking their

Credit and debit card payments

paychecks in crypto and choosing

Cryptocurrencies are based on

to spend their coins.

immutable Blockchain technology.

Every payment made is secure and

Boost your bottom line.

non-reversible.

Adding a new payment method such

Prevent payment delays.

as cryptocurrencies opens up a new revenue stream for your business.

Unlike traditional payment systems, cryptocurrency payments work 24/7,

Get worldwide exposure.

Digital currencies are global, so new customers from all around the world will be able to purchase your products and services.

every day of the year.

36

Start accepting crypto the easy way with CoinPayments Contrary to what it may seem, it is very easy to accept crypto payments, especially with complete solutions like CoinPayments. Here we show you how to do it in 3 simple steps:

1 2 3

Register

Visit now coinpayments.net/register, chose a Business account, and fill in the fields.

Verify

Take a few minutes to go through the KYC verification process.

Integrate

Follow our integration guide or contact us, and we will guide you.

Our crypto payment gateway allows you to accept payments in Bitcoin, Tether, Ethereum, Litecoin, Dogecoin, and up to 120 other cryptocurrencies. All this, maintaining one of the lowest transaction fees in the industry—only 0.5%.

Follow in the footsteps of more than 117,000 merchants in over 190 countries who are already using CoinPayments.

Register now for your free Business account and start enjoying the benefits of crypto payments today.

37

Start

accepting payments in

and over 120 cryptocurrencies

with CoinPayments

Visit coinpayments.net/register and

sign up for your Business account today

REGISTER NOW

38

About us

CoinPayments is the first and leading global cryptocurrency payment processor. With over 1,000,000 wallet user accounts and over 117,000 merchants in over 190 countries since 2013, we became one of the most widely used multi-crypto payment systems available online.

Our crypto payment gateway allows business owners to accept Bitcoin, Ethereum, Tether, and over 120 other digital currencies for their goods and services, as well as store in the wallet over 2,315 altcoins – all on a single platform.

About this publication

This publication contains general information and reports based on data from CoinPayments. We do not provide any financial, investment, or other advice. This publication is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business.

Before making any decision or taking any action, you should contact a qualified financial advisor.

Sources

CoinPayments data, from January 2021 to March 2022.

*https://www.reuters.com/technology/quarter-small-businesses-across-ninecountries-plan-offer-crypto-payments-visa-2022-01-12/

Disclaimer

The information on this downloadable e-article is provided for educational, informational, and entertainment purposes only. While we strive to provide accurate and timely information, we cannot guarantee that all information is accurate as of the date it is received or will continue to be accurate in the future.

CoinPayments Inc. does not provide trading, financial, investment, or any other type of advice through this content. Readers are encouraged to seek the advice of a qualified professional before making any decision or taking any action that may affect their financial situation or that of their business.

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