Bitcoin (BTC) has experienced significant growth this year, driven by increased interest from traditional institutional investors and integrations with major players like Visa and Mastercard. This influx of capital and support could lead to substantial gains in the crypto market in the coming year.

Despite this growth, the number of daily active users in the crypto space still lags behind popular mainstream apps like TikTok. To achieve widespread adoption, the ecosystem needs to focus on high-utility use cases that encourage frequent engagement.

While traditional payment options are dominated by established players and heavy regulations, there is untapped potential in complementary cryptocurrencies for loyalty rewards. Recent initiatives like the loyalty programs on the Polygon blockchain and partnerships with NEAR Protocol show promise in this area.

Crypto debit and credit cards have gained popularity among enthusiasts but have struggled to attract mainstream consumers. While these cards offer perks like earning cryptocurrency on spending and discounts at popular apps, they have not been successful in broadening the user base beyond existing community members.

To address this challenge, loyalty mechanics could be a key driver of adoption. By integrating crypto rewards seamlessly into everyday purchases, consumers can earn incentives on regular transactions. Established networks like Visa and Mastercard are exploring ways to incorporate crypto rewards into their platforms to drive mass adoption.

Visa is developing a “Visa Web3 Loyalty Engagement Solution” that allows merchants to create crypto-powered engagement campaigns, while Mastercard is focusing on end-to-end services that integrate digital assets into existing systems. These initiatives aim to make crypto rewards more accessible and appealing to a wider audience.

Despite challenges like regulation, user experience, and reputation, loyalty programs offer a compelling solution to drive crypto adoption. By partnering with trusted financial brands like Visa and Mastercard, the industry gains legitimacy and confidence in the eyes of consumers.

Incorporating tokenized rewards into routine spending habits can help onboard new users and engage existing cardholders. By embracing crypto-powered loyalty programs, legacy payments giants can attract a global audience and transition towards digital payments.

As technology matures and focuses on improving everyday lives, partnerships with traditional industry leaders could be a powerful and sustainable way to drive mass adoption of cryptocurrencies.

Filipp Shubin, co-founder of Swoo, believes that these partnerships have the potential to revolutionize the crypto space and make digital assets more accessible to a broader audience.

This article provides general information and should not be considered legal or investment advice. The author’s views are their own and do not necessarily reflect those of Cointelegraph.

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