Wallets have emerged as the basic point of entry into the digital currency realm as cryptocurrencies expand, with proponents pushing for the sector’s mainstream adoption. As a result, despite the current market instability, the use of crypto wallets has remained rather active.
According to Finbold data, an estimated 102.06 million crypto wallets were downloaded for Android and iOS smartphones between January and October 2022 for 21 selected apps that enable digital currency storage. The figure indicates a 42.37% decrease from 177.85 million downloads in 2021.
Last year’s statistic reflects the largest yearly crypto wallet downloads ever, up 453.12% from 32.95 million in 2020. At the same time, 2017 saw the second-highest rate of downloads, at 433.33%, with 16.72 million crypto wallets downloaded.
The month of January in 2022 saw the most downloads (16.11 million), while the number for the most recent month, October, was 8.7 million. The smallest number of downloads (7.29 million) were registered in July. It should be noted that the quantity of wallet downloads does not always signify the addition of new users. An investor may occasionally have many wallets on the same device.
According to the data, the expansion of crypto wallets mirrors broader market trends. Downloads peaked in 2021, when the market saw an extended bull run that saw most assets reach all-time highs, highlighted by Bitcoin’s (BTC) $69,000 valuation. Fear of missing out (FOMO) appeared to have set in, with investors flocking to capitalize on the rally.
Wallets were used by investors to facilitate related crypto activities such as investing, trading, peer-to-peer transactions, remittances, and yield farming.
On the other hand, as investor interest in digital assets remains low, downloads have plummeted during the current bear market. The lack of interest has actually been caused by related activities like the worry of losing crypto holdings in light of high-profile events like the Terra (LUNA) ecosystem crash and the FTX crypto exchange collapse as confidence in centralised trading platforms declined.
Moreover, the failure of the FTX exchange has caused widespread liquidity concerns, which may lead to an increase in downloads. In response to the crisis, most investors have transferred their holdings from hot wallets on crypto exchanges to self-custody wallets in order to maintain control over their digital asset holdings.