Generally speaking, the year 2023 has been particularly dynamic for the crypto industry. More specifically, the cryptocurrency payments segment is no exception as it performed exceptionally well throughout this year. This is, to say the least, what a recent study by the crypto firm CoinGate indicates.
Rise in crypto payments in 2023 dominated by BTC and USDT
In a recent report, CoinGate, a leading player in the payment intermediary industry, reported a remarkable rise in crypto transactions on its platform. The latter handled a staggering 4 million crypto payment activities over the period.
In particular, the year 2023 stood out as the pinnacle in terms of performance. Indeed, it totaled an impressive number of 1,294,058 crypto payments, a substantial increase of 40% compared to 2022.
The frequency of these operations is just as exceptional with an average of one payment every 24 seconds. A constant which underlines the growing importance of crypto payments. The latter being more than simple vehicles for speculating on investments.
Concretely, bitcoin (BTC) and USDT take the lion’s share of the total of these operations with 35.6% and 25.4% respectively. A dominance of BTC which has decreased compared to 47.8% in 2022. It is quite the opposite for that of USDT which experienced growth, in November and December, of 36.5% and 39.1 %, respectively.
Litecoin (LTC) emerges as an important player
Alongside bitcoin (BTC) and USDT, the crypto Litecoin (LTC) has emerged as an important player. This, thanks to a contribution of 9.5% to total crypto payments on CoinGate in 2023.
Ethereum (ETH), Bitcoin’s Lightning Network and Tron (TRX) follow closely at 9.3%, 7.8% and 7.1%, respectively. The implementation of Binance Pay in March resulted in Binance’s payment service accounting for 8.2% of all transactions on CoinGate.
Separately, CoinGate highlighted a notable increase in the number of crypto-friendly traders using its services. This indicates broader acceptance and adoption of crypto payments in recent months.
The platform forecasts a promising trajectory for crypto payments in 2024, driven by sustained innovation focused on improving the user experience. CoinGate says it is optimistic about the future of crypto payments, which it sees becoming the norm rather than the exception.
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