With 2022 now drawing to a close, it is safe to say that it has been another year where cryptocurrency has been a hot topic, especially across the online real money gambling space.
As the first iGaming software company to work with cryptocurrencies, SOFTSWISS regularly shares its company report, including the most recent insight into the performance of crypto across key products.
During the first three quarters of 2022, total bets on the supplier’s platform increased by 33.1% compared to the same period in 2021. Further underpinning the robust 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.
While the value of all bets in fiat currency increased by 8.4% on a quarter-by-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, this value fell by 5.9%. However, in comparison with the three quarters of 2021, a more considerable drop in cryptocurrency bets of 23.5% is noted.
Q2 highlighted the cyclical nature of cryptocurrency. While this is nowhere near the ‘crypto winter’ the iGaming industry was crying about, it does signal a downturn phase in crypto betting. However, seasonality will likely play a role in Q4, with the holiday season, seeing an uptick in bets.
Vitali Matsukevich, COO at SOFTSWISS, comments: “Despite these numbers, interest in cryptocurrency among players and operators is only increasing. As a comparatively new phenomenon in iGaming, 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, driven by current gaming activity.”
More than 70% of all bets are placed with fiat currency, but it is important to highlight that in a comparison of the three quarters of 2021, the ratio of cryptocurrency bets was higher at almost 44%. Bitcoin, Ethereum and Litecoin continue to be the most common options. In general, players remain loyal to their chosen crypto, with Bitcoin having near-ubiquitous dominance, as more than 72% of all crypto bets were placed with the currency in Q3.
Despite the 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, and this is expected to continue.
The full list of the most popular cryptocurrencies is available in the company report here.
Vitali Matsukevich adds: “Even though world events 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.”