Cryptocurrency transactions within the iGaming industry has significantly increased over the past 2 years and it will soon surpass the fiat money. According to the recently released SOFTSWISS corporate report, cryptocurrency adoption in the iGaming space is growing at a very rapid pace.
SOFTSWISS is a leading company in crypto gambling. It provides certified software solutions for managing iGaming operations. SOFTSWISS holds several gaming licenses, providing one-stop-shop iGaming solutions. In 2013, SOFTSWISS became the first company in the world to introduce a bitcoin-optimized online casino solution.
The findings of this study is based on the comparative data for Q1 2021 and Q2 2022 taken from the SOFTSWISS Game Aggregator and the SOFTSWISS Casino Platform.
Crypto Bets Doubles in 1 Year
Similar to the global trend of cryptocurrencies’ increasing popularity, the SOFTSWISS corporate study also finds the continued growth of crypto gambling.
The report found that total cryptocurrency related bets more than doubled in Q1 2022 compared to Q1 2021. More precisely, it has increased by 116.7%.
Andrey Starovoitov, COO at SOFTSWISS, said:
“Crypto gambling has become an independent, full-fledged, and extremely promising line of business. Brands adapted to these conditions have an advantage such as wider opportunities for operation and, accordingly, a wider audience.”
Fiat Currencies Dominates Bet Share, But Crypto To Overtake Soon
Fiat currencies continue to dominate, accounting for 64 percent of overall volume. Cryptocurrencies, on the other hand, are slowly increasing in popularity. In comparison to the same period last year, crypto’s market share climbed by about 10% in Q1 2022, rising from 26.3% to 35.9%.
The market share of cryptocurrencies has increased by 29 percentage points since the first quarter of 2020. Looking at the current trend, Cryptocurrency is likely to overtake Fiat Money in iGaming in the coming years.
Bitcoin dominates in iGaming, but Altcoins gaining market share
Despite the fact that Bitcoin has been the preferred cryptocurrency since SOFTSWISS introduced it, its market share declined by 10% in Q1 2022. This is due to the rising popularity of Ethereum and Litecoin, the two most popular cryptocurrencies. Their market share has risen by 3.45% and 2.95%, respectively. In Q1 2022, the exact share of the top three cryptocurrencies were:
- Bitcoin (BTC) 72.80%
- Ethereum (ETC) 13.45%
- Litecoin (LTC) 6.45%
Andrey Starovoitov, COO at SOFTSWISS, commented:
“Bitcoin will still be the leading cryptocurrency for deposits in the near future. However, the strong growth of other altcoins demonstrates the interest in more advanced coins in terms of technology such as Ethereum. More players will prefer to diversify their funds with other cryptocurrencies. This is a positive trend related to the development of the market.”
DOGE and USDT are also amongst the most used coins in iGaming, according to the SOFTSWISS report.
Crypto Gambling 2022: What to Expect?
Andrey Starovoitov, COO at SOFTSWISS, said:
“The stronger regulation of traditional casinos will also attract new operators to the crypto niche. We’ll see active growth in this segment as most current leaders will join the niche.”
“We can highlight what you need to launch a successful crypto project based on our experience: crypto processing such as Coinspaid, crypto exchange services, and the in-game currency conversion for a wider selection of game content. However, new needs are already emerging. For instance, using NFTs to gamify the player experience and build a community of like-minded people around online casinos.”
Cryptocurrencies will continue to gain prominence in iGaming with significant changes in coin share. One of the major factors that will influence the industry is the diversification of cryptocurrencies used for betting.
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