USDC Dominates Crypto Card Spending at $759 Million a Month

Crypto payment card spending has surged to $759 million in July, more than two and a half times its level a year ago. This increase is largely driven by USDC, a dollar-backed stablecoin that now accounts for 58% of the volume. In contrast, EURe, a euro-backed stablecoin that dominated the market just two years ago, has collapsed to around 2%. The rise of USDC and other stablecoins like USDT, which increased to around 26%, is largely due to their convenience and ease of use.

According to figures from a16z crypto, cardholders made approximately 9 million purchases in July, compared to about 5.2 million in the same month last year. The average purchase amount was $86. These cards allow users to spend stablecoins anywhere traditional cards are accepted, converting the crypto into local currency at checkout.

The growth of stablecoin payments has been rapid, with nearly all card spending now taking place on digital dollars. In early 2024, euro-backed stablecoins dominated the market, but USDC's share has increased significantly over the past year. Optimism, Solana, and Base are also carrying significant stablecoin volume.

Visa and Bridge, a stablecoin infrastructure firm owned by Stripe, plan to expand their stablecoin card program to over 100 countries by the end of the year. This expansion will allow users to use their stablecoin balances at more than 175 million merchant locations that accept Visa.