Crypto Betting Dynamics: Altcoins Gain Momentum in 2024

SOFTSWISS has unveiled a comprehensive report shedding light on the evolving landscape of cryptocurrency betting in 2024. This report, part of their annual "State of Crypto" series, suggests notable shifts in player preferences and behaviors, primarily driven by significant changes in Bitcoin's valuation. With Bitcoin witnessing a notable surge in its market value throughout the year, the landscape of crypto betting has experienced a consequential shift.

Despite Bitcoin's persistent dominance as the primary choice for cryptocurrency transactions in online gambling, its overall market penetration has been observed to decrease. This is largely due to players adapting their betting strategies in response to its rising valuation. While the total amount wagered using Bitcoin has seen an increase of 18.7% in comparison to 2023, the actual number of individual crypto bets has decreased by 12.8%.

These data points highlight a more cautious approach from players, influenced by Bitcoin's inherent volatility. As its exchange rate escalated, the average size of bets placed using cryptocurrency increased by a substantial margin of 1.4 times, with fiat currency-based wagers remaining relatively stable.

Vitali Matsukevich, the Chief Operating Officer at SOFTSWISS, commented on this trend by saying, "The sharp appreciation of Bitcoin in the final quarter of 2024 led to a more conservative approach among players toward crypto betting. At the same time, the increased value of Bitcoin resulted in higher average bet amounts, positively impacting the overall Crypto Bet Sum." Matsukevich indicated that the fluctuations in Bitcoin's price are expected to continue influencing player behavior in the months ahead.

Rise of Altcoins in iGaming

A pivotal revelation from the report is the escalating adoption of alternative cryptocurrencies, or altcoins, within the iGaming sector. In 2023, altcoins represented a mere 26.8% of total crypto bets. However, there has been a considerable increase in their usage during 2024, with altcoins constituting nearly half of all crypto wagers.

Bitcoin's share in the market saw a deduction of over 17 percentage points, while Tether increased by 7.3 percentage points, Litecoin by 6.5 percentage points, and Ethereum by 3.4 percentage points. This surge in altcoin popularity is possibly attributable to their comparative stability over Bitcoin, particularly in terms of volatility. Moreover, prominent gaming brands, including Rollbit and Shuffle, are integrating proprietary tokens into their platforms to bolster player engagement.

These proprietary tokens grant operators more control over in-game transactions, mitigate volatility-related risks, and offer players exclusive perks such as bonuses and rewards. Nonetheless, the development and promotion of such proprietary tokens require substantial investment and robust marketing to establish trust with players.

Future Prospects for Crypto and Fiat Betting

Beyond the immediate trends in cryptocurrency, the SOFTSWISS report also highlighted an overall growth in betting activity across both crypto and fiat transactions. The total amount wagered across the board increased by an impressive 35.9% compared to the previous year. While fiat transactions saw a notable surge of 40.1%, the growth in crypto wagers was comparatively slower, resulting in a 2.5 percentage-point decline in crypto's overall market share within iGaming.

Matsukevich encapsulated the broader implications of these trends, stating, "Bitcoin’s rate surge in 2024 has driven higher average crypto bet sizes, yet the decline in total crypto bets suggests players are diversifying and managing risks more cautiously. The growing adoption of altcoins and proprietary gaming tokens highlights a shift toward more stable and engaging financial ecosystems. For operators, balancing fiat and crypto while leveraging payments innovation will be crucial for sustained growth in the evolving iGaming landscape."

As the dynamic world of digital currencies continues to expand, further adjustments in player behavior are anticipated within the iGaming industry. The growing preference for altcoins, coupled with the advent of proprietary gaming tokens and the enduring viability of fiat betting, points to an increasingly diversified landscape. This report underscores the significance of adaptability for iGaming operators who must effectively balance cryptocurrency transactions with the reliability of traditional fiat payments. With ongoing Bitcoin price fluctuations and the emergence of new alternative digital assets, the online gambling sector is expected to continue evolving as players explore new opportunities for crypto betting.

Source: SOFTSWISS Reports Shift in Crypto Betting, With Altcoins Gaining Traction,lcb.org, March 6, 2025.

By GamesAndCasino