Cardano enters the top 10 most spent cryptos in e-commerce

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Crypto payments on e-commerce platforms are booming despite market conditions, with Cardano (ADA) and Binance Coin (BNB) entering the top 10 most-spent cryptocurrencies. According to a report from payment processor Coingate, people spent a lot of their crypto in 2022.

The report collected data from 2014 and determined that e-commerce stores received 2.5 million crypto payments during that time. On average, these online stores see around 312,500 crypto payments per year.

In this sense, 2022 has set a new record by registering more than three times this figure, as shown in the graph below. Online merchants recorded 927,294 payments with Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Cardano (ADA) and Binance Coin (BNB) during this period.

The trend of crypto payments is on the rise. Source: CoingateCardano and other cryptos are taking over online payments

This chart shows an upward trend in how people are adopting crypto as their preferred method of payment. In 2022, the number of crypto transactions increased by 63%, or 2.7 times the annual average in an unfavorable macroeconomic environment for these assets.

In the coming years, the trend is set to expand, and with rising prices and benefits, crypto payments will become a more popular alternative to their traditional counterparts. The report states:

() given the depth of an ongoing bear market, suggesting that hemorrhaging markets don’t necessarily discourage people from shopping. In fact, it’s quite the opposite, as traders’ turnover in 2022 had increased by 60% compared to the previous year, when the crypto markets peaked ().

In today’s crypto payments landscape, Bitcoin remains king, accounting for around 48% of all transactions processed. This metric has declined by 7.6% in 2021 and could see further losses allowing altcoins like Cardano (ADA) to take over the sector.

Cryptocurrency accounts for 1.1% of total transactions, while Ethereum, Litecoin, and TRON account for over 20% of complete crypto transactions. However, this landscape is likely to change in the coming years as more people embrace crypto payments.

ADA price sees profits on the daily chart. Source: ADAUSDT TradingviewWhy Crypto is a Better Payment Method

Additionally, the report notes that the Bitcoin Lightning Network accounts for 6.2% of transactions paid in Bitcoin. This number has increased from 4.53% in 2021, and is likely to trend upwards with continued innovation and ability to pay.

BTC Lightning Network payouts increased in 2022. Source: Coingate

The report stated the following about the adoption of the Bitcoin Lightning Network:

2022 has been great for the Lightning Network, as BTC capacity has doubled over the year, while the number of nodes has also increased, signaling accelerated adoption of its use. Knowing how much development effort goes into this technology, the rate of adoption is unlikely to slow anytime soon.

To wrap up on the long-term outlook for crypto payments, the payment processor noted an increase in the number of newly registered merchants in 2022. During this period, online merchants are embracing crypto payments to reduce costs and offer better privacy and security features.

As a result, these merchants saw more sales, according to the report. Vaidas Rutkauskas, CEO of Cherry Servers, an IT infrastructure service provider, said the following on the reasons for embracing crypto payments:

We integrated crypto payments based on the needs of our customers, most of them prefer to pay with crypto, Vaidas says, adding that customers were happy with the innovation and we were excited about the opportunity to offer our services to an even wider range of clients. Currently, crypto payments take up a large portion of our basket, and steady growth is being seen.

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