Dollar stablecoins take 84% of card spend as euro-backed coins collapse to 2%
Crypto payment card spending shot up to $759 million in July, about 2.5 times the level a year earlier. USDC, backed by dollars, now accounts for 58% of that volume, according to figures cited by a16z crypto.
Dollar stablecoins displace euros in under two years
Cardholders made ~9 million purchases in July, compared with about 5.2 million in the same month last year. That works out to an average purchase of ~$86.
These cards allow holders to spend stablecoins anywhere a traditional card is accepted. At checkout, the crypto is converted into local currency, and the merchant receives an ordinary card payment.
Users either hold stablecoins on-chain in self-custody or deposit them with the card issuer. No traditional bank account is needed.
The figures are mostly drawn from on-chain data that is indexed directly. RedotPay, the largest by volume, reports stablecoin spending only rather than it being observed on-chain.
As of early 2024, euro-backed stablecoins led the way, with about 88% of card volume settled in EURe, much of it on the Gnosis chain. By July the share of EURe had collapsed to around 2%.
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