Those concerned about the future of crypto betting were probably a little alarmed at the recent SoftSwiss report. The gambling software development company releases regular updates about the state of cryptocurrency gaming. Many industry experts see this data as a reasonable indication of what a crypto future might look like.
The SoftSwiss report for the third quarter of 2022 showed a continued downturn. Doom mongers may view this as a sign that digital currency’s impact on gambling is in decline. Certainly, the rather bleak results of SoftSwiss’ Q2 report won’t ease such fears.
However, the company’s COO, Vitali Matsukevich, is adamant that the overall picture is much brighter than it appears at first glance. Certainly, crypto winter 2022 has hurt the industry, but the downturn is likely temporary rather than permanent.
This article delves into the findings of the SoftSwiss report, analyzing whether the results are a genuine cause for concern. It also investigates the potential future of crypto gaming.
Even if the future of crypto is rosy, we shouldn’t overlook the challenges faced by the digital currency gambling markets. While we await the next crypto boom, there are undoubtedly worrying trends to acknowledge.
First, according to SoftSwiss, there was a 44% drop in the sum of Bitcoin gambled in Q3 2022 compared to Q3 2021. Furthermore, the total sum of crypto bets fell to €6.34 billion in the third quarter of 2022, compared to €8.29 billion in the same period in 2021. This number represents a year-on-year drop of over 23%.
Also, the total sum of bets in Q3 in 2022 was down almost 6% compared to Q2.
Regarding crypto versus fiat betting, there was a significant increase in fiat market share growth. In Q3 2022, fiat accounted for almost 71% of total bets. In the same period in 2021, this figure was just 56%. Indeed, it is fiat’s largest share of the market since the second quarter of 2021.
Those hoping to see the next crypto bull run in 2022 were disappointed. Instead, the much-discussed “crypto winter” dominated the market for practically the entire year. Bitcoin tumbled from its record high of over $68,000 in November 2021 to below $17,000 about 12 months later.
These numbers show a steep drop, and investors understandably decided that caution is the right play at present. Individuals who gamble with cryptocurrency are concerned by the fall in value across the board. Therefore, some gamers may have withdrawn their balance due to fears of it falling further.
Also, the reduced price of crypto means that the value of bets is also down. For instance, a 0.1 BTC wager in November 2021 was worth $6,800. Fast forward a year, and the same bet was worth $1,700.
While the value of bets fell in Q3 2022, the volume of wagers increased markedly. Indeed, there was a 33% increase in total bets compared to the third quarter of 2021. The GGR figure, calculated by subtracting total wins from total bets, was up an impressive 36% over the same period. According to the SoftSwiss data, it is a steady rise, which suggests a sustained upward trend, regardless of the state of the global economy.
Although the third quarter of 2022 spelled bad news compared to Q3 2021, the quarter-on-quarter decreases are quite small when considering the market’s issues. A drop of around 6% in the sum of money bet in Q3 compared to Q2 is a positive. After all, the value of the cryptocurrency market as a whole dropped by more than that amount in the same period.
Consequently, if the crypto winter of 2022 can’t cause digital currency gaming to grind to a halt, it isn’t hard to imagine how fast the market will grow if there’s another bull run!
There is good news about crypto diversification in betting. BTC’s dominance is receding. In Q3 2021, Bitcoin was the crypto of choice for over 86% of wagers. During the same period in 2022, its market share was below 73%.
In the third quarter of 2021, only 3.5% of bets did not involve Bitcoin, Ethereum, or Litecoin. In Q3 2022, that percentage rose to over 7%, despite a significant rise in ETH and LTC market share. Clearly, the crypto-betting market is no longer confined to a couple of coins.
Finally, expansion in Latin America could drive future growth. Several crypto-focused brands are expanding in a region where immense growth in iGaming seems inevitable. Cryptocurrency looks certain to become a significant part of a flourishing gambling market.
We should not ignore the discouraging trends. The overall value of the cryptocurrency betting market experienced a recent drop. Investors continued to flee as the crypto winter of 2022 hit the industry hard. Trillions of dollars were wiped off the market within a year, and those who invested at the peak of the bull run unquestionably suffered.
However, the “big picture” outlook for the crypto betting market remains positive. Despite the large downturn, the market has far from fallen off a cliff and looks in good shape. No one knows if or when crypto will rise again. Countless people have tried to make this prediction and failed miserably!
Yet, when it comes to the next crypto boom, it does seem a case of “when” rather than “if.” The crypto betting market has mainly stood firm in the face of mounting obstacles. Therefore, we can assume that it is far more robust than its critics claim. It seems likely that if the overall market recovers, growth in the betting niche seems inevitable.
Consequently, we can say that the future of crypto gambling is bright. Individuals who remain calm and refuse to press the panic button will likely thrive, while others flounder.
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