How Much Are People Spending with Crypto?
By Tylt Editorial Team
Jan 30, 2025
Read time
3
minutes
As cryptocurrency adoption grows, understanding spending habits with digital assets reveals significant insights into potential impacts for businesses. Data on average transaction values (ATVs) highlights spending behaviour patterns and emerging opportunities for merchants who adopt crypto payments.
Average Transaction Values Across Cryptocurrencies
1. Bitcoin (BTC):
The average transaction value for Bitcoin is around $74,000 USD as of recent estimates. This high ATV suggests Bitcoin is often used for larger transactions, including investments or high-value purchases such as real estate, automobiles, and luxury goods
2. Ethereum (ETH):
The ATV for Ethereum is typically lower than Bitcoin, averaging around $700 USD per transaction. Ethereum’s popularity for decentralised finance (DeFi) and smaller transactions contributes to its lower average, making it a common choice for online payments and digital services.
3. Stablecoins (USDT & USDC):
Stablecoins have shown remarkable growth with an average transaction value of approximately $5,000 USD. Their stability makes them ideal for business-to-business payments and larger financial transactions across borders.
4. Litecoin (LTC):
Litecoin’s average transaction value is about $250 USD, often used for lower-value transactions due to its faster processing speed and lower fees, making it a popular choice for online retail payments.
5. Overall Trends in Crypto Spending:
In 2024, global crypto spending is projected to surpass $500 billion. This represents a significant increase in crypto adoption, driven by a growing number of merchants accepting digital currencies across various sectors, including retail, hospitality, and digital services.
Spending Patterns with Crypto
High-Value Purchases: Bitcoin is often used for large transactions, especially in sectors like real estate, luxury goods, and high-end technology, with average transaction values often exceeding $70,000 USD.
Day-to-Day Transactions: Stablecoins like USDT and USDC see frequent use in everyday spending, with the average payment typically between $100-$500 USD. This reflects stablecoins’ role in markets for groceries, entertainment, and online purchases.
Frequency of Use: Over 80% of crypto users report using digital currencies for online transactions at least once per month, with 32% using them weekly.
Market Insights for Businesses
Growth in Crypto Payments: Global spending with cryptocurrencies is expected to grow by 30% annually, with an estimated 1 billion crypto users by 2030. Businesses that adopt crypto payments could tap into this expanding market, especially in cross-border e-commerce.
Savings on Transaction Fees: Traditional credit card fees average 2-3% per transaction, while crypto fees are often as low as 0.4% for stablecoins. Businesses can reduce overhead by using crypto for high-frequency, low-cost transactions.
International Reach and Cross-Border Transactions: 70% of crypto payments processed are cross-border, reducing currency conversion fees and delays associated with international bank transfers. This makes crypto particularly attractive for businesses targeting global customers.
Lower Chargeback Rates: With blockchain’s transparency, chargebacks are almost nonexistent in crypto, a notable improvement for industries facing high fraud and chargeback rates, such as e-commerce. Studies indicate crypto chargeback rates are below 0.1% compared to an average of 1-1.5% in traditional payments.
Key Takeaways
For businesses, these data points reveal promising benefits:
Attracting a Tech-Savvy Audience: Crypto payments appeal to a younger audience, with 63% of millennials and 58% of Gen Z indicating they would prefer to pay with digital currencies if offered by businesses.
Higher Spending Potential: People who pay with crypto often spend more per transaction. Businesses accepting crypto report average order values that are 15-20% higher than those from traditional payment methods, reflecting the higher purchasing power of crypto users.
E-commerce Growth: In e-commerce, crypto payments have been shown to reduce cart abandonment rates, with up to 40% fewer abandonments when digital currency payment options are available.
Conclusion
Analyzing spending patterns with crypto highlights a rising opportunity for businesses. With stablecoins enabling predictable spending, Bitcoin’s use in high-value purchases, and significant savings on transaction fees, businesses can leverage crypto to expand globally, reduce costs, and attract a wider audience. For merchants considering crypto payments, these data points underline the value of adapting to an evolving digital economy that shows no signs of slowing down.
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