iGaming software company SOFTSWISS has released a report that indicates that more bettors are using fiat currency to engage with rather than cryptocurrencies.
Whilst the report finds that fiat currency bets increased by 8.4% on a quarter-to-quarter level and by 24.2% on a year-to-date level, SOFTSWISS found that there was an overall decline of individual crypto bets.
Compared to Q2, the value of crypto bets fell by 5.9%, however, in comparison to Q3 2021, the iGaming firm notes that a 23.5% ‘considerable’ drop in cryptocurrency bets occurred.
Q2 findings also highlighted the “cyclical nature of cryptocurrency”, as the market has been dealt several blows to its prices, with the most recent scandal coming in the form of crypto exchange FTX’s collapse last week.
SOFTSWISS analyses that there does appear to be an upcoming “downturn phase in cryptocurrency betting”, the firm did outline that it may see an uptick in crypto bets during the holiday season, which usually sees an increase during this period.
“Despite the numbers, interest in cryptocurrency among players and operators is only increasing,” stated Vitali Matsukevich, COO of SOFTSWISS.
“As a comparatively new phenomenon in the iGaming industry, cryptocurrency faces a volatile environment, depending on different economic and social factors.
“However, we expect crypto rates to increase in the fourth quarter of this year, which will be driven by current gaming activity.”
In total, 70% of SOFTSWISS bets were placed with fiat currency, with crypto bets accounting for one-third of the total bet volume.
But this may not signal the end for cryptocurrency betting, as SOFTSWISS revealed that they were “definitely higher” in the first three quarters of this year, compared to the first three quarters last year, experiencing a 44% increase.
The iGaming firm also outlined which crypto currencies are being used the most with Bitcoin being the overwhelmingly popular token, with a usage rate of 725 amongst crypto bettors during Q3 findings.
SOFTSWISS did reveal however that other cryptocurrencies, such as Ethereum (14.5%) and Litecoin (5.2%) increased in usage and inferred they would rise in the following months.
Despite the nose-dive and turbulence that the crypto sector has experienced in 2022, SOFTSWISS remains optimistic that crypto betting will not be dealt great damage as a result of this, as more operators identify the importance of diversifying their payment options.
“Even though world events and crises of 2022 have quarterly impact indicators, prevailing market dynamics continue to favour cryptocurrencies and their use in online gambling,” concluded Matsukevich.
“The crypto-friendly iGaming market remains relatively stable and is adapting in line with the global financial markets. We have a positive outlook on the future of crypto.”