A clear indicator of the adoption and interest in crypto is the use of crypto wallets. Despite falling crypto prices this year, the number of people downloading a crypto wallet is still increasing. From January to October, more than 100 million crypto wallet download.
Crypto wallet downloads remain high
Especially in January this year the number of downloads was very high; then more than 16 million wallets were downloaded. This number is now decreasing somewhat. In October this number was still at 8 million. Although the popularity of crypto wallets is still quite high, this year will most likely not be able to match last year’s popularity. In 2021, almost 178 million wallets were downloaded in total. So, 2022 will see a drop of about 43 percent so far.
The number of crypto wallet downloads shows a clear correlation with the trend of the crypto market. With the free fall of the prices and the fiascos of Luna and FTX, among others, it is not surprising that new investors are hesitant this year. A small decline in the popularity of crypto wallets is therefore not surprising.
Crypto hardware wallets are doing well
On the other hand, after the fall of FTX, we saw a clear reaction from the hardware wallet sector. The growing mistrust of centralized crypto exchanges saw an increase in interest self custody wallets. Earlier this month, hardware wallet manufacturer Trezor reported an increase of no less than 300% in wallets sold.
Binance also recognized this trend and decided to invest in the hardware wallet sector. The exchange is going to invest money in a hardware wallet developer at our southern neighbors. It concerns the Belgian company Ngrave. According to Yi He, head of Binance’s investment arm, self-custody wallets are extremely important:
“Self custodial wallets are one of the safest ways to store crypto assets. Binance Labs looks forward to joining the booming hardware wallet sector and partnering with Ngrave to bring sophisticated products to retail and institutional investors.”