Remarkable Surge in Crypto Payments in 2023
The year 2023 witnessed a significant milestone in the adoption of digital currencies for retail and e-commerce transactions, with a remarkable surge in crypto payments. According to a recent report by CoinGate, a crypto payment processor firm, the number of crypto payments processed reached staggering heights, showcasing robust growth and diversification in the crypto landscape.
Massive Surge In Crypto Payments
In 2023, CoinGate processed an astounding 1,294,058 cryptocurrency payments, marking a 39.4% increase compared to the previous record. This exponential growth underscores the accelerating pace of crypto adoption. Notably, approximately one-third (32.35%) of all transactions occurred in 2023, emphasizing the surge in the popularity of digital currencies.
The integration of Binance Pay wallet into CoinGate’s payment services played a significant role in driving this growth. Binance Pay accounted for 8.2% of all crypto payments in 2023, showcasing a steady increase in usage throughout the year.
Lightning Network Surges In Popularity
CoinGate’s report highlights the increasing maturity and acceptance of the Lightning Network, an essential component of Bitcoin payments. In 2023, the Lightning Network facilitated 7.8% of all Bitcoin payments processed by CoinGate, representing a notable increase from previous years.
Furthermore, the overall number of Lightning Network payments grew by 35.9% compared to the previous year, indicating a growing reliance on this technology. However, Bitcoin’s share of total transactions processed by CoinGate dropped from 54.8% in 2021 to 35.6% in 2023.
Stablecoins, particularly Tether’s USDT, emerged as a popular choice for crypto payments in 2023. The usage of USDT increased from 15.1% in 2022 to an average of 25.4% in 2023, indicating a shift towards stablecoins due to their perceived stability and reliability.
Alternative Payment Solutions
Crypto-friendly merchants experienced remarkable success in 2023, with a significant portion of their sales attributed to cryptocurrency payments. Eldorado.gg reported crypto payments contributing to 3% of their total sales, while IPRoyal saw over 30% of their payments made in cryptocurrencies. Hostinger captured nearly one-fourth of all crypto-paying customers, showcasing the effectiveness of alternative payment solutions.
Paradigm Shift in Crypto Adoption
Overall, 2023 demonstrated a paradigm shift in the adoption of cryptocurrency payments. The surge in transactions processed by CoinGate, the increasing usage of Binance Pay and the Lightning Network, and the diversification of cryptocurrencies used for payments all point towards a new era of acceptance and trust in digital currencies.
Hot Take: Cryptocurrency Payments Reshaping Retail and E-commerce
The transformative power of cryptocurrency payments continues to reshape the retail and e-commerce landscape. As crypto-friendly merchants reap the benefits of embracing these payment methods, it becomes evident that cryptocurrency payments offer sales growth, solutions for the unbanked population, and global accessibility. With further expansion expected in 2024, the stage is set for continued growth and adoption of digital currencies.
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