Cryptocurrency payment platform BitPay processed 608,000 transactions in 2024, reflecting growing adoption of digital assets for payments during the bull market. According to BitPay’s “Decrypted 2024” report, Litecoin (LTC) emerged as the top choice for transactions, surpassing Bitcoin (BTC) and Ether (ETH).

Litecoin Tops the Charts

Litecoin dominated BitPay’s transaction volumes with 201,165 payments, cementing its position as the most widely used cryptocurrency on the platform. Bitcoin followed with 130,250 transactions, while Ether accounted for 56,356 payments. BitPay highlighted 2024 as a year where crypto evolved beyond being a mere store of value, becoming a tool for everyday spending.

Spending Trends Mirror Market Growth

BitPay’s data revealed a strong correlation between rising crypto prices and user spending behaviour. Holders increasingly cashed out their digital assets to purchase luxury goods, jewellery, electronics, and precious metals, with transactions for these categories surging by 39% to 205% compared to the previous year.

BitPay lists the most popular transactions on its platform in 2024. Source: BitPay
BitPay lists the most popular transactions on its platform in 2024. Source: BitPay

The United States Takes the Lead

The United States accounted for over 76% of BitPay transactions, reaffirming its dominance in crypto payments. BitPay, headquartered in the US, allows merchants to accept crypto payments and receive settlements in local currencies, catering to a largely domestic customer base.

Crypto Payments Growth Remains Modest

Despite notable growth, crypto adoption as a mainstream payment method remains slow. Data from Deutsche Bank, reported by American Banker, indicates that crypto retail transactions accounted for only 3% of payments between 2021 and 2023.

Stablecoins Drive Adoption

Interestingly, stablecoins—digital assets pegged to fiat currencies—are emerging as a significant driver of crypto payment adoption. CoinGate, another crypto payment processor, reported a 29.6% increase in transactions in 2024, with stablecoins making up more than a third of the total.

Stablecoin usage continues to surge, especially in the last two years. Source: CoinGate
Stablecoin usage continues to surge, especially in the last two years. Source: CoinGate

However, critics argue that stablecoins undermine the decentralised ethos of cryptocurrency. Monty Munford, writing in Magazine, noted that stablecoins require greater trust in centralised issuers, which contradicts the fundamental principles of decentralisation. Despite this, users appear willing to trade decentralisation for convenience, as stablecoins like those issued by Tether and Circle command nearly 89% of the $206 billion stablecoin market capitalisation, according to DefiLlama.

Looking Ahead

While cryptocurrencies like Litecoin, Bitcoin, and Ether are driving increased transaction volumes, the slow overall growth of crypto payments underscores the challenges of achieving mainstream adoption. Stablecoins, though controversial, continue to play a pivotal role in bridging the gap between traditional finance and the crypto economy.

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