Weekly top-ups for crypto cards hit a June peak.

On July 7, local time, blockchain outlet Cryptopolitan reported that 10 crypto-based projects peaked in usage and transaction volume in June, and the top five projects set new usage records again in the first week of July.

The trend is drawing attention because demand for card-related services is holding up relatively well even as overall sentiment in crypto trading remains subdued. Crypto card payment volumes have already exceeded $10 billion, prompting the market to reassess card services as an on-chain area with proven real-world use.

Wider adoption is being driven by the spread of stablecoins and their combination with fintech services. As more funds flowed into cards, top-ups set new records and payments reached a peak level.

Some warn that recent card projects are engaged in aggressive rewards competition, meaning current figures do not necessarily represent sustainable demand. Some usage is seen as relying on promises of token airdrops for active users.

Trends differed by network. As of July 7, the cards with the largest inflows were based on TRON and BNB Chain, while actual spending was larger on cards based on Optimism, Base and Arbitrum. Revolut's decision to stop supporting USDT also influenced recent inflows into TRON and BNB Chain cards. Crypto cards targeting regions outside the euro zone still provide access to USDT.

The spread of cards is also increasing the presence of crypto neobanks. Market participants see the influence of crypto cards and neobanks growing by the day, while critics say card operators could face stronger regulatory scrutiny and could lose service access in some regions.

Regulatory responses are emerging as a key variable for business continuity. Ana Gabriela Ojeda Caracas, head of Blend Money, warned that not all neobanks will survive over the next 18 months and that some projects could have their market access blocked. She also said expanded crypto activity has raised compliance standards and that real-time sanctions screening is needed rather than batch-level processing.

User protection remains an issue. Unlike peer-to-peer transfers, card transactions involve physical payments, so stricter standards apply on know-your-customer checks, sanctions evasion and potential use of illicit funds. Crypto cards lack unified standards on asset ownership and custody structures. Users therefore need to check each card's terms and how funds are held.

In this context, KAST, one of the card issuers in the Solana ecosystem, recently revealed custody issues. User deposits were treated as transactions, effectively creating a structure that controls users' stablecoins, and the market is increasingly citing self-custody cards as a more desirable alternative, where funds are kept in accessible wallets and the risk of freezes is lower.

The crypto card market is growing rapidly on the back of stablecoin adoption and demand for real-world payments. At the same time, signs are emerging of short-term demand driven by rewards competition and airdrop expectations, regulatory risks by region, and differences in custody structures by card issuer, raising the possibility of future market reshuffling.

JUST IN: Neobanks set a massive all-time high this past week, with over $245M in top-ups. This is 18% higher than ever recorded. pic.twitter.com/Hld2CW3C7w