Gate Research: Overview and Trends for the Crypto Wallet Sector in 2024

1/15/2025, 6:44:39 AM

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Blockchain Macro Trends Wallets Research Payments

Wallets serve as the gateway for users into the blockchain world, yet they are not receiving the capital attention that matches their strategic importance. The financing in the wallet sector has been declining year-on-year, which adds to the industry's challenges. Given the mix of opportunities and challenges, it's crucial to analyze the current state and future trends of crypto wallets. This report will explore the driving factors and potential changes in the sector through comprehensive market research.

Key Takeaways

Widespread Appeal of the Wallet Market: 2024 is seen as the beginning of the first cryptocurrency bull market in the post-pandemic era. The significance of crypto wallets is increasingly recognized, with monthly downloads peaking at 40 million. Even during the downturn in 2023, total downloads for the year approached 114 million. This trend suggests that crypto wallets are attracting more users than ever.

Factors Driving User Engagement: While funding for the wallet sector has declined over the years, user engagement continues to rise. In 2024, the use of smart contract wallets and cross-chain compatible wallets on major blockchains like Ethereum has notably increased, reflecting a strong demand from users for convenient and efficient asset management tools.

Growth and Challenges of Key Wallets: Several prominent projects within the Ethereum wallet ecosystem have continued to grow in 2024, but they face challenges related to technology and business models. For example, some leading wallets have seen their user bases double, but high gas fees and complicated user experiences have limited wider adoption, highlighting the need for the industry to reduce barriers to entry.

Fluctuations in the Wallet Token Market: The market for wallet-related tokens has experienced significant volatility in 2024. Despite overall market growth, many tokens have not performed as well as expected. This situation presents wallet projects with an opportunity to reassess their business models and improve their incentive structures within their ecosystems.

Limited Capital Interest: The total funding for the wallet sector reached $2.7 billion, representing 5.7% of global crypto financing, with funding amounts declining annually. This trend indicates a cautious stance from investors toward this sector. Nonetheless, as a vital entry point into the blockchain ecosystem, the strategic importance of crypto wallets remains significant.

Market Outlook: While the crypto wallet market will face numerous challenges in 2024, the gradual maturation of core technologies such as account abstraction, gas abstraction, and chain abstraction, along with enhancements in digital identity and hardware wallet features, suggests that the wallet market is poised for significant growth in the coming years.

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Author: Simon Liu

Translator: Paine

Reviewer(s): Piccolo、Edward、Elisa

Translation Reviewer(s): Ashely、Joyce

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.

* This article may not be reproduced, transmitted or copied without referencing Gate. Contravention is an infringement of Copyright Act and may be subject to legal action.

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