Bitcoin is losing its dominance over other cryptocurrencies in payments to merchants, crypto processor BitPay says

Blue money.

Yuichiro Chino.

It appears that the dominance in making payments with cryptocurrencies is waning.

BitPay, a payment service provider for the digital currency, recently said that people and businesses are using other coins to make cross-border payments.

BitPay said that transactions made in bitcoin towards merchants that use the payment system fell to about 65% in 2021. Stable coins made up 13% of the total. Dogecoin, shiba inu, and litecoin were added to BitPay's roster recently, which accounted for 3% of the total token usage.

BitPay said that the shift away from bitcoin was due to a preference for stable coins. If users think the price could increase 10-fold within a year, they might not want to spend money on it.
Stable coins are pegged to a real-world asset like gold or the dollar. These are designed to maintain a stable price over time. OneUSDC is meant to always be worth one dollar. It is a highly volatile asset.

BitPay says that people used theircryptocurrencies to buy luxury goods, including cars, jewelry, boats, watches, and even gold. The company's transactions for luxury goods increased in the year after, while overall payment volumes increased. It had 50% revenue growth last year.

BitPay helps companies such as Microsoft, Amazon, and Apple to make payments using cryptocurrencies. It can be used as a reference for which types of token are being used most.

The Federal Reserve's December meeting further fueled market expectations of a possible rate hike in March, which weakened the tech and Cryptocurrencies. This has raised concerns about a squeeze in the market.

The business ebbs and flows with the price. Stephen Pair said that people tend to spend less when the price goes down. We have not experienced a decline in volume with this recent correction. It's probably a reflection of more and more companies that need to use this as a way to conduct payments.

The price of the digital currency was $42,662, down from an all-time high of $69,044 in November. It has risen just 16% in the last year, compared to the S&P 500's 23% gain.

Metaverse and meme coins have crashed into eToro's top 20.

Business Insider has an original article.