In 2023, crypto betting increased by more than 20%, as reported by SOFTSWISS.
The leading technology company, with over 15 years of experience in iGaming and number one in encription-optimized software, shares its analysis of the dynamic cryptocurrency landscape.
iGaming Market Overview by SOFTSWISS
According to industry research, the global iGaming market is expected to double by 2030, with a compound annual growth rate of 11.7%.
Thus, revenues are expected to exceed 140 billion euros, with a significant portion attributed to cryptocurrency gaming.
SOFTSWISS, as an innovator in the development of encryption software for iGaming, regularly conducts research to monitor the dynamics of encryption in the market.
Then, using comparative and correlational analysis, experts evaluate data collected from more than 600 cryptocurrency-friendly brands provided by the company.
Based on data from SOFTSWISS, the iGaming market grew in 2023. In absolute terms in euros, the total sum of bets increased by 38.2% compared to the previous year. Therefore, the total bet count showed an even greater increase, exceeding 51.2%.
The average bet is decreasing slightly for several reasons. A significant factor is the broader reach of online gaming, driven by advanced technology and the greater availability of the internet.
Therefore, this trend is most evident in emerging markets like Latin America and Africa, where the stakes are generally lower.
Additionally, the growing number of players under 30 and with budget constraints contributes to the decline in average bet sizes.
Analysis
The in-depth quarterly analysis, starting in early 2022, reveals that fiat betting is experiencing more substantial growth compared to cryptocurrency betting.
In the fourth quarter of 2023, the sum of cryptocurrency bets registered an increase of 8.2% in absolute terms. The sum of bets in fiat currencies increased by 16.4% compared to the third quarter of 2023.
At the end of 2023, the share of cryptocurrencies in the total sum of bets (27.5%) decreased by 3.9%
Thus, the comparative analysis of the sum of bets on cryptocurrencies in 2023 compared to the previous year shows a growth of 21.1%. At the same time, cryptocurrency bet counts increased by 50.5% year-on-year.
The growing number of bets indicates increased interest in cryptocurrency gaming, but the greater availability of digital currencies could lead to slightly more economical betting.
“The advantages of using digital currencies, such as fast transactions and anonymity, are the main motivators for many players. Given these dynamics, the market demands the expansion of iGaming project opportunities for crypto players,” said Vitali Matsukevich, director of SOFTSWISS operations.
“In-game currency conversion, for example, allows operators to engage players with cryptocurrency assets in games initially designed for fiat transactions. Projects that adopt these possibilities continue to gain more advantageous market positions”, he added.
Stabilization of cryptocurrency betting
The average fiat stake has remained stable at around 0.82 euros over the past year. Despite fluctuations in the average crypto bet during 2023, ranging from 1.59 to 1.88 euros.
That is, the changes appear modest compared to the two-fold drop seen in the average crypto bet during Q4 ’22, which reached €1.56.
This indicates a certain level of stabilization in the average bet on cryptocurrencies throughout 2023.
Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, commented: “The dynamics of the average crypto bet align with crypto market fluctuations. When digital currency values stabilized in the second half of 2022, the average crypto bet also stabilized. stabilized”.
Another thing is that the average bet on cryptocurrencies is almost twice as large as the average bet on fiat currency.
This indicates that digital currencies are potentially used by higher-income players. Operators should consider this to increase project profitability.”
Classification of cryptocurrencies
The top five most traded digital currencies in the iGaming scene have remained stable over the past two years.
In 2023, the structure of cryptocurrencies was as follows:
- Bitcoin – 73,3%
- Ethereum – 9,9%
- Litecoin – 6,6%
- Tether – 4,6%
- Dogecoin – 3,1%
In Q4 2023, Bitcoin saw a slight decline of 5.7% compared to Q3 2023. On the other hand, Ethereum and Litecoin showed growth of 4.7% and 2.2% respectively. during the same period.
Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, stated: “The digital currency market is expanding rapidly, with estimates showing over 50% growth in capitalization by 2023.
Despite the risks caused by the high volatility of cryptocurrencies and their dependence on various factors, their use can bring extra profits to operators.
Thus, the iGaming sector is promising for investment due to the growth in the fiat and crypto markets. But success depends on reliable and experienced partners”, he concluded.
