With less than two months left in 2022, it is safe to say that it has been another year where cryptocurrency has been a hot topic across numerous industries, including the online real money gambling space.
As the first iGaming software company to work with cryptocurrencies, SOFTSWISS regularly shares the сompany report which includes the most recent insight into the performance of crypto coins across key products to inform the wider community about the market’s potential.
Before diving into the specifics of crypto, it is worth noting that during the first three quarters of 2022, total bets on the supplier’s platform increased by 33.1% compared to this period in 2021, showcasing significant growth of interest in its products.
Further underpinning the strong performance of the SOFTSWISS business model and its increased client base, the company’s GGR for the first three quarters was also up compared to the same period in 2021.
The growth was mainly driven by an increasing number of partners using the Casino Platform and the Game Aggregator solutions, with clients seeing a solid performance from both products. The difference in GGR year-to-date is a staggering 36,6% increase, with SOFTSWISS’ client base continuing to expand, ensuring bettors utilise the supplier’s array of products with both fiat and cryptocurrencies.
While the value of all bets in fiat currency increased by 8.4% on a quarter-on-quarter level and by 24,2% on a year-to-date level, there was an overall decline in the number of individual crypto bets placed.
Compared to the second quarter, the value fell by 5.9%. However, in comparison with the three quarters of 2021, we can note a more considerable drop in cryptocurrency bets – 23,5%.
Q2 highlighted the cyclical nature of cryptocurrency. While this is nowhere near the crypto winter the iGaming industry was crying out about, it does signal an upcoming downturn phase in cryptocurrency betting. However, seasonality will likely play a role in Q4 as it usually does towards the start of the holiday season, which sees an uptick in bets.
Commenting on SOFTSWISS’ latest report, Vitali Matsukevich, COO at SOFTSWISS, said: “Despite the numbers, interest in cryptocurrency among players and operators is only increasing. 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.”
FIAT MARKET SHARE ON the RISE
A significant number of bets, more than 70%, are placed with fiat currency, and crypto bets account for one-third of the total bet volume. It is also important to highlight that in a comparison of the three quarters of 2021, the ratio of cryptocurrency bets was definitely higher at almost 44% – and this is reflected in the chart in comparison with the same period in 2022. This difference from last year over the current year is explained by the positive fluctuations of major and minor cryptocurrencies during the Second Wave in 2021.
From the players using crypto coins, data shows that Bitcoin, Ethereum, and Litecoin continue to be the most common options. In general, players remain loyal to their chosen crypto coins, with Bitcoin having near-ubiquitous dominance, as more than 72% of all crypto bets were placed with the currency in Q3. However, there is a firm belief within SOFTSWISS that USDT betting will be on the rise.
The ranking of the cryptocurrencies most frequently betting in Q3 is shown as follows:
- Bitcoin (BTC) – 72,8%;
- Ethereum (ETC) – 14,5%
- Litecoin (LTH) – 5,2%
One certain thing is that despite a continued decline in crypto bets in the third quarter of 2022, players still demand to use alternative currencies. More and more operators understand the importance of offering it as a payment solution, which is expected to continue.
The full list of the most popular cryptocurrencies is available in the company report.
Vitali Matsukevich commented: “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. 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.”