Dollar Dominance: USDC and USDT Surge to 84% of Crypto Card Spend

The crypto payment card market has seen a significant shift in favor of dollar-backed stablecoins. USDC and USDT now dominate, handling about 84% of card spending, with USDC at around 58% and USDT at about 26%. This marks a dramatic reversal from just two years ago, when the euro-backed EURe accounted for nearly 88% of card volume.

The growth of dollar-backed stablecoins has coincided with the emergence of new card programs and settlement chains. Optimism (29%), Solana (19%), and Base (19%) have become prominent in processing transactions, while Gnosis has seen its share plummet to roughly 2%. The average purchase value has risen to around $86, with nearly 9 million purchases made in July.

Monthly crypto card volume reached a record $759 million in July, up 2.5 times from the same period last year. This represents a significant increase from just over $1 million when tracking began in October 2023. The shift towards dollar-backed stablecoins has largely come at the expense of euro rails, with EURe's share falling to around 2%.