Market commentator The Kobeissi Letter drew attention to a significant spike in cryptocurrency card deposits on Wednesday, connecting the jump to growing stablecoin adoption.
Crypto Card Top-Ups Hit The Roof
Kobeissi Letter spotlighted that cumulative card deposits exceeded $10 billion for the first time in June, citing data from on-chain payment analytics firm Paymentscan. The deposits have increased 82% year-to-date and more than tripled in a year.
Additional data revealed that monthly cryptocurrency card volumes exceeded $900 million in June, representing a 27% increase from January and more than double the volume from the previous year.
Fintech giant Visa Inc. (NYSE:V) was the dominant payment network, commanding over 98% market share, followed by Mastercard Inc. (NYSE:MA).
Cryptocurrency card deposits refer to the act of loading a cryptocurrency debit or prepaid card with digital assets. These cards instantly convert your cryptocurrency into local fiat currency at the point of sale.
Stablecoins Driving The Surge?
Kobeissi Letter attributed the stratospheric increase to the growing adoption of stablecoins as a payment rail for cross-border and everyday transactions.
Notably, 88% of the payment volume highlighted earlier was settled in Tether (CRYPTO: USDT) and USDC (CRYPTO: USDC), the two biggest stablecoins by market capitalization and liquidity.
Stablecoin adoption is moving deeper into mainstream finance. Earlier this week, Visa, Mastercard, and a consortium of over 100 companies jointly launched a new USD-pegged stablecoin called Open USD.
Supportive regulations are driving this expansion forward. The GENIUS Act, which establishes the first comprehensive regulatory framework for dollar-pegged payment stablecoins in the U.S., was signed into law last year.
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