Throughout 2023, rising transaction fees within Bitcoin (BTC) and Ethereum (ETH) prompted users to explore more efficient payment alternatives like Litecoin (LTC).
BitPay, a key cryptocurrency payment service provider, has observed a shift in user preferences. In December, 38.25% of BitPay platform payments utilized Litecoin, surpassing Bitcoin’s 23.24% and Ethereum’s 10.45%. This trend emerged in November 2023, with LTC’s payment share at 34.52% compared to BTC’s 30.55%. Dogecoin (DOGE) ranked fourth at 7.38%, followed by Bitcoin Cash (BCH) at 6.18%, Polygon (MATIC) at 5.09%, and Circle USD (USDC) at 2.07%.
BitPay stands as a leading cryptocurrency payment processor, handling 390,401 transactions in the past six months, including 51,896 transactions in December, with 19,850 opting for Litecoin.
Recent BitInfoCharts data highlighted Litecoin’s robust performance in the cryptocurrency market. Within 24 hours, the Litecoin network recorded a transaction volume of $1.23 billion, totaling 525,888 transactions, representing 25.28% of LTC’s market capitalization. In contrast, Bitcoin’s transaction volume hit $15.88 billion with 418,600 transactions (1.86% of its market value), while Ethereum’s volume was under $3 billion, less than 1% of its market value, despite surpassing 1 million transactions.
Litecoin’s growing prominence in the cryptocurrency payment landscape is primarily attributed to Bitcoin’s transactional inefficiency, driving users to seek more streamlined alternatives.
