Cryptocurrency
Economics of Bitcoin ATM market could hinder wider adoption
ATM service provider, Bitcoin of America, had carved out a slice of the market but recently closed shop in the United States State of Connecticut due to a lack of proper licensing.
The Connecticut Department of Banking (DoB) issued a cease and desist order against the company, accusing it of operating unlicensed crypto ATMs in the state. But the allegations didn’t stop there; the firm was also accused of facilitating scams by allowing transactions related to fraudulent activities.
In response to the challenges, Bitcoin of America released a statement claiming it would immediately halt all of its operations in Connecticut. While the decision marked the end of the company’s presence in the state, it also underscored the regulatory hurdles faced by crypto ATM operators, particularly in the United States.
The closure also sent ripples across the crypto community, leading many industry observers to question the long-term efficacy and utility of these machines.
Connecticut closure explained
Due to the nascency of the cryptocurrency industry, marrying digital currencies with conventional financial structures — as in the case of crypto ATMs — requires intricate regulatory supervision. This is particularly true in Connecticut, where the DoB oversees ATMs under the Money Transmission Act.
The act requires that any service involving the transfer of money, including the conversion of traditional currency to cryptocurrency, must secure a money transmitter license.
On May 22, the Connecticut DoB claimed that Bitcoin of America had not secured the necessary license to operate Bitcoin ATMs in the state. It further stated that four Connecticut Bitcoin ATM users were scammed out of tens of thousands of dollars via Bitcoin of America’s kiosks.
The DoB stated: “Bitcoin of America, following the consent order, compensated these consumers with a total of $86,000. After facing criminal charges, Bitcoin of America is in the process of ceasing its operations in Connecticut.”
In a separate incident in March, state officials in Ohio seized 52 Bitcoin of America ATMs, as authorities suspected scammers were using the kiosks.
Operating crypto ATMs is harder than it looks
Jason Grewal, chief legal officer for Web3 security firm Sys Labs, told that running a crypto ATM involves much more than just acquiring a license.
Operators in the U.S. must adhere to Anti-Money Laundering (AML) rules set by the Financial Crimes Enforcement Network, comply with the Bank Secrecy Act’s Know Your Customer (KYC) norms, and conform to the Internal Revenue Service’s requirements for reporting crypto transactions.
In Grewal’s opinion, such complexities could play a significant role in the waning popularity of these machines. In March alone, a staggering 3,627 cryptocurrency ATMs went offline, marking the most significant monthly decrease in the history of crypto ATMs. He said:
“Considering the shifting popularity of crypto ATMs, various factors seem to be at play. For one, the transaction fees imposed by these machines often exceed those on online exchanges, posing a deterrent for heavy users. Additionally, the necessity to satisfy complex regulations and licensing requirements can be challenging and potentially overshadow the perceived advantages of in-person crypto transactions.”
Further tipping the scales away from crypto ATMs are alternatives like decentralized exchanges (DEXs) and decentralized finance (DeFi) platforms.
Lower transaction costs, universal access, superior privacy and a broader range of supported cryptocurrencies make these projects increasingly compelling to many people. DeFi platforms also offer features such as staking, yield farming and borrowing — services typically absent from crypto ATMs.
Grewal believes that moving forward, crypto ATM operators will have to innovate and change to better serve the evolving needs of their consumers.
Robert Quartly-Janeiro, chief strategy officer for cryptocurrency exchange Bitrue, told Primary companies currently dominate the crypto ATM market, something which needs to change for the market to grow and adoption to increase.
Moreover, he believes that the physical location of crypto ATMs is also a major factor when it comes to engaging customers. He added:
“Ultimately, one of the key pillars for the mass adoption of crypto remains the ability to sell crypto for fiat currencies in-country. The landscape has changed slightly, so the need for crypto ATMs has changed economically, geographically, psychologically, as well as from an infrastructural standpoint.”
The economics of crypto ATMs
Most crypto ATMs in operation today run in collaboration with established companies like ChainBytes, LibertyX, CoinMe and others, which allow independent businesses to become “operators,” “partners,” or “hosts” for these machines.
The return on investment depends on several factors, including the location of the business (e.g., commercial district, high-traffic area); the number of daily transactions; the average transaction size; the total expected revenue from transaction fees; and the marketing strategy to promote the crypto ATM in question.
According to crypto ATM firm Chainbytes, a single Bitcoin ATM can earn up to $3,000 monthly, with gross monthly revenues of $30,000.
Operating a crypto ATM presents several challenges as well. Regulatory complexities require operators to navigate often unclear laws, obtain necessary licenses, and comply with AML and KYC regulations. Security risks, both physical and digital, necessitate robust protective measures, adding to high operational costs that include machine maintenance and cash management.
The inherent volatility of cryptocurrencies can also impact profitability, with significant value fluctuations potentially leading to financial losses. Operators must also maintain sufficient cryptocurrency and cash reserves to meet customer demand, as shortages could harm their reputation and business.
Who’s leading the global crypto ATM race?
Since the first crypto ATM debuted in a Vancouver coffee shop in 2013, the sector has evolved dramatically. Today, there are around 35,000 machines globally, transforming how people interact with digital currencies.
The United States has the lion’s share of crypto ATMs globally. Source: Coin ATM Radar
The U.S. houses roughly 30,000 crypto ATMs, accounting for 86% of all such machines worldwide.
Canada’s crypto ATM scene has also flourished over the last few years. As of Q1 2023, the country hosts 2,744 machines, while its European compatriot Spain boasts around 286 machines.
Down under, Australia has also been making waves. After adding 99 ATMs in late 2022, it leapfrogged El Salvador and Poland to become the fourth-largest crypto ATM hub with around 473 kiosks.
The future of crypto ATMs
Despite the many hurdles impeding the growth of the crypto ATM market, the space is expected to grow significantly in the coming years. The market — valued at $71.9 million in 2021 — is projected to rise to $5.45 billion by 2030.
However, for the sector to thrive, it will be crucial for operating companies to obtain regulatory clarity. Physical and digital security measures must also be enhanced to protect the machines and the transactions they facilitate. This includes robust cybersecurity measures to prevent digital hacks and adequate physical security to deter theft attempts.
Finally, efforts must be made to reduce the operational costs of running these machines. This could involve developing more cost-effective kiosks, optimizing cash management processes and exploring alternative business models. Thus, as we head into a future driven by crypto-enabled tech, it will be interesting to see how the future of the crypto ATM market continues to evolve and grow.
[PRESS RELEASE – London, United Kingdom, May 9th, 2025]
Vector Smart Chain (VSC), a Layer 1 blockchain protocol, has announced two strategic developments: the implementation of a fixed $4 gas fee model and the appointment of Peter Ritchie, former Chief Financial Officer at CitiGroup Finance, as Strategic Finance Executive Consultant. These initiatives mark a shift in VSC’s operational and leadership structure, aiming to support network scalability and financial oversight.
These developments signal VSC’s growing influence at the intersection of blockchain innovation and institutional-grade finance.
Breaking the Mold: VSC Introduces Fixed $4 Gas Fee
In a space dominated by volatile transaction fees and scalability challenges, VSC’s flat-rate $4 gas fee provides predictable costs, greater accessibility, and enhanced user confidence.
“The $4 gas fee isn’t arbitrary—it’s carefully designed to balance network security and accessibility,” said a VSC spokesperson. “We’re removing the guesswork from blockchain.”
VSC’s hybrid consensus mechanism ensures high throughput and near-instant transaction finality, making it ideal for enterprise adoption and real-world applications such as asset tokenization.
Backed by this innovation, major platforms are already moving. Notably, BESC Exchange recently announced its migration from Solana to VSC.
“We believe VSC’s infrastructure and economics offer the highest upside,” said Brian, Executive at BESC LLC.
Strategic Leadership: Peter Ritchie Joins VSC
To support its rapid growth and sustainability-focused vision, VSC has welcomed Peter Ritchie—former CFO of CitiGroup Finance—to help drive global financial strategy.
Ritchie brings decades of institutional finance experience and will play a pivotal role in:
- Designing blockchain-based sustainable finance frameworks
- Advancing VSC’s carbon initiatives
- Guiding enterprise and institutional integration
“This isn’t just about blockchain—it’s about building a transparent, resilient financial future,” Ritchie said. “VSC is uniquely positioned to lead that evolution.”
Next-Gen Blockchain with Real-World Utility
With transparent network operations via VSC Explorer, deflationary tokenomics (including a $1 buy-and-burn per transaction), and a mission to bring blockchain to mainstream finance, VSC continues to build a robust, accessible, and sustainable ecosystem.
About Vector Smart Chain
Vector Smart Chain (VSC) is a Layer 1 blockchain protocol designed to deliver cost predictability, transparency, and institutional-grade performance. Its fixed $4 gas fee and hybrid consensus mechanism power next-generation decentralized applications, real-world asset tokenization, and carbon market integrations.
Users can learn more at vsgofficial.com
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This week, we examine Ethereum, Ripple, Cardano, Solana, and Hype in greater detail.
Ethereum (ETH)
In an impressive reversal, Ethereum saw its price increase by 32% this week as it crossed above $2,000. At the time of this post, buyers are trying to confirm the $2,400 level as a key support. If successful, then ETH has a clear path towards $3,000 next.
This rally has surprised the market that was rather pessimistic about Ethereum. However, since the bottom at $1,400, the likelihood of a relief rally was high and is now materializing.
Looking ahead, Ethereum appears determined to follow Bitcoin which has recently crossed above $100,000. A pullback after such a rally is likely, but the momentum remains bullish with a good chance for higher highs later.
Ripple (XRP)
XRP’s volatility continues to remain lower compared to competitors, but still managed to book a respectable 6% price increase this week. This took it above $2.3 which is now acting as a support.
If buyers can sustain and increase this momentum, then they can aim for $2.6 in the coming days, where sellers returned in the past. Hopefully, a second attempt will be successful so that XRP can challenge the resistance at $3 in the future.
Looking ahead, this cryptocurrency has been consolidating between $2 and $3 since November 2024. Whenever the price will leave this range the volatility will explode and see it move much faster.
Cardano (ADA)
Cardano had a great week and closed with a 12% price increase. This allowed it to get closer to the $0.9 resistance. Another push can see buyers attempt a breakout towards $1 in the future.
The momentum is in a clear uptrend with higher lows and higher highs. The indicators such as the MACD and RSI are also mirroring this and support continuation of this price action.
Looking ahead, ADA’s first major challenge will be at the $0.9 resistance. If that level turns into a key support, then the price will have a clear path to challenge $1 and the previous high at $1.3.
Solana (SOL)
Solana’s price action is similar to ADA and managed to close the week with a 12% increase as well. This has placed SOL comfortably above $150 as it aims for higher highs.
With buyers in control, this cryptocurrency has a key target at $186. The support is at $152 and was not tested after its recent breakout. This makes a pullback likely before continuation.
Looking ahead, Solana is well on its way to returning to a $200 price. Sellers may make their presence felt on the way there, but the bullish momentum is strong enough to make a serious attempt in the coming weeks.
Hype (HYPE)
HYPE is the second-best performer on our list this week, with an impressive 21% price increase. The resistance at $21 was unable to stop buyers, who rushed to this cryptocurrency and pushed it towards $25 today.
The former resistance at $21 will now act as a key support and as long as HYPE’s price stays above this level, then the rally can continue towards new highs.
Looking ahead, the most important resistances on the chart right now are found at $24 and $28. At the time of this post, buyers and sellers are fighting around $24, and the winner will set the trend in the coming days.
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Cryptocurrency charts by TradingView.
Cryptocurrency
Ethereum’s (ETH) Price Explosion, Ripple’s (XRP) Next Targets, and More: Bits Recap May 9
TL;DR
- ETH surged by 23% in 24 hours to over $2,400, sparking bullish predictions of $4K to even $25K.
- XRP jumped 9% daily to $2.40 amid optimism from the settlement between Ripple and the SEC, with analysts eyeing a potential breakout past $2.80 toward new all-time highs.
- PEPE skyrocketed by more than 50% weekly, hitting its highest price since January, boosted by whale accumulation and a revitalized crypto market.
ETH’s Impressive Comeback
The second-largest cryptocurrency, which has been among the biggest disappointments this cycle, finally managed to reverse the negative trend. In the past several days, Ethereum’s price has been going through the roof, and currently, it is worth over $2,400 (per CoinGecko’s data). This represents a whopping 23% increase in just 24 hours and the asset’s best daily performance since 2021.
Somewhat expected, the rally infused enthusiasm across the crypto community, and many analysts believe the current levels could mark the beginning of a major bull run.
The X user Lucky recently predicted a jump towards $4,000 in the following months. Shortly after, the analyst with over two million followers on X claimed that “the sleeping monster is finally waking up” and “is aiming for greater moves.”
Other popular industry participants who gave their two cents on the matter include Merlijn The Trader and KALEO.
The former saw an analogy between Ethereum’s price chart in the past three years and that of bitcoin formed between 2019 and 2021 to forecast a price explosion to $12,000 by the start of 2026. For their part, KALEO envisioned an even more optimistic scenario:
“In a world where Bitcoin is heading to $500K+, $25K+ ETH almost sounds too bearish.”
What’s Next for XRP?
Ripple’s native token is also well in the green on a daily scale, albeit charting less substantial gains than ETH. As of this writing, it trades at roughly $2.40, a 9% increase for that timeframe.
Its resurgence could be attributed to the booming crypto market as well as the recent developments in the Ripple v. SEC lawsuit. Just recently, the two entities agreed to a $50 million settlement, potentially ending the years-long legal battle that began in 2020 over alleged unregistered XRP sales.
According to numerous analysts, Ripple’s cross-border token seems well-positioned for a further pump in the short term. The X user CRYPTOWZRD thinks a possible breakout of the resistance at $2.80 could push XRP toward a new all-time high.
Ali Martinez chipped in several hours later, predicting that a rise above the $2.26 mark might ignite a jump to $2.60. As mentioned above, the price managed to surpass that zone.
How’s PEPE Doing?
Last but not least, we will touch upon the frog-themed meme coin PEPE, which has been among the top performers in the past week. It is up 52% for that period and over 42% for the day, currently trading at its highest point since January this year.
Some of the elements supposedly fueling its staggering surge include the revival of the digital asset market and increased whale activity. As CryptoPotato reported, a certain large investor recently bought 500B PEPE, rounding up their total holdings to 2 trillion tokens.
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