Dollar-Backed Stablecoins Dominate Crypto Card Payments

Crypto payment cards have seen a significant shift in usage over the past two years. The data from a16z crypto shows that dollar-backed stablecoins, particularly USDC and USDT, now account for approximately 84% of card spending. This is a stark contrast to earlier this year when euro-backed tokens like EURe dominated with around 88% market share.

The growth in dollar-backed stablecoin usage coincided with the launch of new card programs and settlement chains. Over the same period, the use of euro-backed tokens has significantly declined, falling from around 88% to just 2%. USDC now handles about 58% of card spending, while USDT accounts for approximately 26%.

This shift in usage is not limited to the types of stablecoins being used. The overall volume of crypto card payments has also increased significantly, reaching $759 million in July alone. This represents a 2.5x jump from just a year ago when monthly volume was around $306 million.