Litecoin is the second cryptocurrency after Bitcoin that we have started to process for our vendors. Since then, our merchants can accept Litecoin for their goods and services, and they certainly do.
Based on our data, currently, Litecoin comes out as the third most popular cryptocurrency of choice for purchasing things online. Besides, we can notice an increase in Litecoin’s popularity, which gave us a chance to dig into numbers and see how the Litecoin performed as a payment currency in a span of 9 months.
We are going to go in-depth here by covering most of what we can, starting with payment’s metrics, cart sizes, preferred settlements, and more.
So, without further ado, let’s jump into it!
Why do people pay with Litecoin in the first place?
Litecoin was launched in 2011 and is often called a lighter version of Bitcoin, or the silver of cryptocurrencies. A stable track record, most recent bull run, and trading volumes as high as they ever were suggests that it is not going away anytime soon. Quite the opposite – it is becoming a digital asset of choice for payments more often than ever. But why?
There are a few notable reasons for it. First of all, the fees for transactions are very low, which makes it a decent currency for online shopping, or even micro-transactions. Currently, the average transaction cost revolves around 0.00053 LTC, or $0.073.
Secondly, Litecoin is fast – it takes around 2.5 minutes to mine a block of transactions. When using the Lightning Network, it is even faster. In fact, it takes only a fraction of a second to make a payment when using it.
Overall, Litecoin does an excellent job by serving as an alternative peer-to-peer network to Bitcoin’s and has a vast potential to grow in parallel to it.
Paying with Litecoin – how popular is it?
Between October 2018 and June 2019, we have processed a total amount of 11,679 Litecoin payments, totaling in 22,586 LTC during the time. Payments in LTC account for 4.28% of total cryptocurrency payments made to our merchants in a given period. Looking at the bigger picture, Bitcoin still stands strong as #1 currency for shopping, followed by Ethereum in the 2nd place.
Worth noting that since March, the number of Litecoin payments has been climbing up consistently, reaching its peak in June with 1,891 paid orders and 9,6% increase from May, the second-best performing month in terms of Litecoin’s payment count.
April was a month when shoppers had spent more Litecoin than ever before – that is around 2,600 LTC. But, as the price began to climb in May, shoppers started to use Litecoin more often while making smaller payments with it, resulting in a smaller average cart size.
Furthermore, the trend continued in June – shoppers kept choosing Litecoin as a payment currency more frequently, which makes it the most productive month in terms of payment count.
Speaking of cart sizes, the biggest one to date is 165.28 LTC, or $8,254 worth of LTC at the time, whereas the smallest cart is merely 0,000173 LTC. Currently, the total average cart size is worth around $108 in LTC.
Do merchants keep the Litecoin that they receive?
Most believe that merchants who accept digital assets almost always immediately convert to fiat currency. However, this is not the case for Litecoin, just like it wasn’t for XRP when we first dug into it.
Apparently, only 27% of all merchants choose to convert Litecoin to local fiat currency – that is 3.5% to US dollars and 23.5% to Euros.
What is interesting is that 28.7% choose to keep Litecoin revenue as it is, meaning that almost one-third of our merchants prefer keeping Litecoin than anything else. The remaining 35% of all vendors prefer settling to Bitcoin.
Our most popular Litecoin vendor
In terms of the most Litecoin payments processed, online casino Rotabet takes the lead, accounting for 7.92% of total LTC payments made to our merchants in a given period. We believe that the main reason why Rotabet is making more sales is because the company is actively advertising its crypto payment option.
If you also accept cryptocurrencies at your enterprise, you might be missing an opportunity that companies like Rotabet utilize to the maximum.
Learn how to effectively advertise your crypto payment method
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- Between October 2018 and June 2019, we have processed 11,679 Litecoin payments, totaling in 22,586 LTC.
- Payments in LTC account for 4.28% of total cryptocurrency payments made to CoinGate merchants.
- The best month for Litecoin in terms of payment count was June with 1,891 paid orders.
- The biggest Litecoin cart size to date is 165.28 LTC, whereas the smallest cart is merely 0,000173 LTC. The current total average cart size is worth around $108 in LTC.
- Only 27% of all merchants convert Litecoin to local fiat currency, whereas 35% of all vendors settle to other cryptocurrencies. 28.7% keep Litecoin as it is.
- Our most popular vendor is Rotabet, accounting for 7.92% of total LTC payments processed in a given period.
Are you looking to buy some?
Besides providing merchant services, CoinGate also offers various ways to purchase Litecoin and other digital assets. Whether you want to buy it with your bank account, credit card, mobile balance, or Skrill/Neteller, you can rely on CoinGate to make it happen.
Interested? Check our guide to learn how to buy digital assets on CoinGate.
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