USDC now accounts for 58% of cryptocurrency card spending, up from 48% one year ago, according to data highlighted by a16z crypto (@a16zcrypto). The shift comes as euro-backed stablecoins—most notably EURe—have seen their share of crypto card spending collapse from 88% to just 2% over the same period.

Dollar-Backed Stablecoins Gain Ground

The broader cryptocurrency market is undergoing a notable change in payment preferences, with USDC—issued by Circle, a publicly traded company following its 2025 NYSE listing—emerging as the leading stablecoin for card-based transactions. USDC's share of spending has risen substantially over the past year, reflecting growing adoption of dollar-backed stablecoins amid fluctuating interest rates and economic uncertainty. Circle's regulatory positioning as a money transmitter across U.S. states and its compliance framework have contributed to USDC's acceptance among payment processors and card networks.

USDT (Tether) has also expanded its presence in crypto card spending, rising to 26% from 7% a year earlier. Together, USDC and USDT now represent the vast majority of stablecoin-based card transactions, signaling a clear movement away from euro-backed alternatives. Tether, the largest stablecoin by market capitalization, has increasingly positioned itself for cross-border payments and emerging-market use cases.

Euro-Backed Stablecoins Lose Relevance

EURe, a euro-denominated stablecoin issued by Monerium—an Iceland-licensed electronic money institution and the first company authorized to issue e-money tokens on Ethereum under the EU's EMI framework—experienced the most dramatic decline, falling from a dominant 88% share to approximately 2% of the crypto card spending market. Euro-backed stablecoins have struggled to maintain their position as dollar-backed options have expanded their reach. The rollout of the EU's Markets in Crypto-Assets (MiCA) regulation, which took full effect in December 2024, introduced new compliance requirements for stablecoin issuers operating in Europe, adding a regulatory dimension to the competitive landscape.

Market Context and Considerations

USDC, pegged to the US dollar, is designed to facilitate transactions within the cryptocurrency ecosystem at a stable value. The increasing use of USDC and USDT in payment card transactions highlights their role as stable financial instruments, particularly as businesses and consumers seek payment solutions less exposed to volatility. The US dollar's persistent role as the world's dominant reserve and settlement currency reinforces dollar-backed stablecoins' network effects in global digital payments.

No specific trading volume data was reported alongside these share figures. The trend underscores how changing consumer preferences and macroeconomic conditions—including interest rate fluctuations and the relative strength of the US dollar—are influencing stablecoin adoption patterns in digital payments. The concentration of card spending in just two dollar-backed stablecoins also raises questions about future competition, particularly as new regulated entrants and central bank digital currency initiatives continue to develop across jurisdictions.