Since its inception in 2011, Litecoin (LTC) has become a well-known and respected cryptocurrency amongst crypto enthusiasts. With the hash rate at an all-time high and 100% network uptime, Litecoin is a go-to currency for many people looking to buy goods and services online, new data shows.
A study compiled by CoinGate, a cryptocurrency payment processor, reveals in its latest report published on March 1st, that a total of 88,295 Litecoin payments were processed on the CoinGate’s platform in 2022, representing a 9.5% of total cryptocurrency payments made to merchants that year. Also, the LTC payment volume is 5.5% higher compared to 2021’s number.
As per the findings, Litecoin sits in the fourth position of most used cryptocurrencies for retail payments, while Bitcoin remains the #1 currency for shopping, followed by USDT and Ethereum.
Merchants prefer to keep fiat money
Notably, Given a chance, most merchants who accept cryptocurrency payments tend to convert funds into fiat currencies, the study suggests.
In 2021, 54% of CoinGate merchants exchanged Litecoin for fiat. However, in 2022, this number climbed up to 70%, marking a 16% increase in a year.
Out of 30% that do not exchange Litecoin for fiat, only 4% keep it, while 26% exchange it for other cryptocurrencies. The data shows that, while Litecoin is a convenient currency to pay with, right now, merchants feel hesitant to leave Litecoin on their balance sheet in its original form.
Who is the most successful Litecoin vendor?
For some merchants, Litecoin was a major driving force behind increased sales. Hostinger, a web hosting company, has been paid in Litecoin more than 15,000 times in 2022, making it the most popular company that accepts Litecoin payments by far.
Currently, Hostinger accounts for a staggering 17% of all Litecoin orders processed by CoinGate, proving that cryptocurrency payment solutions pay off when done right.
Justas Paulius, the CEO of CoinGate, believes that more merchants will see value in cryptocurrency payments in the upcoming years, seeing that other businesses manage to find success with it. According to Justas:
“There’s no doubt in my mind that cryptocurrency payments will become a much bigger part of retail and eCommerce. We see consistent growth in the number of people wanting to pay with cryptocurrencies and merchants recognizing the value in accepting them. It’s all about increasing awareness, and each year we’re inching closer to a broader acceptance of cryptocurrency payments as one of the most efficient ways to streamline the provision of services and make yourself more accessible as a business.”
