Despite the bear market, cryptocurrency purchases exploded in 2022

2022 and its series of scandals have fueled fears of a decline in the use of cryptocurrencies. But according to a recent report from CoinGate, this is not the case when it comes to purchasing goods and services. Cryptocurrencies have never been used so much in this context.

Cryptocurrency purchases increased in 2022

A report from payment intermediary CoinGate shows that cryptocurrency purchases have continued to grow strongly since 2017. While customers make an average of 312,500 purchases per year, In 2022, this number increased to 927,294. This is especially noteworthy because this share stopped growing during the last “crypto winter” of 2020:

Progression of the number of cryptocurrency purchases for each year

What this means is that the particularly gloomy atmosphere that prevailed in 2022 was not enough to cancel the attraction for these relatively new payment methods. Therefore it bears witness fundamental consolidation of the sector :

This corresponds to a payment processed by CoinGate every 34 seconds. This is impressive […] and it shows that bleeding markets don’t necessarily prevent people from buying a lot.»

total, the number of cryptocurrency purchases increased by +60% in 2022. According to the report, VPN, VPS and hosting providers saw the most purchases.

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Bitcoin continues to reign supreme

Palmost half of these purchases were made in Bitcoin (48%), even if this share tends to fall in favor of altcoins. USDT is the second most used cryptocurrency (14%), followed by Ether (10%). The report mentions the rise of the Tether stablecoin, which indicates that this type of cryptocurrency is becoming more and more prominent.

On the merchant side, CoinGate is also seeing renewed interest. The number of registered institutions increased by +48% in 2022. This is partly due to the fact that payments are instantly transferred to fiat, which allows service providers not to worry about price volatility, which is very important this year.

So, a particularly optimistic conclusion from CoinGate:

The growth in the adoption of cryptocurrency payments is not slowing down, but it actually speeds it up.»

This report is of course only based on the payment manager, but it does suggest payments is a sector less affected by the bear market. This is also something that has emerged since 2022: markets suffered, but underlying interest fell short of expectations.

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Source: CoinGate

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