New Huobi research has revealed that the number of crypto wallet users worldwide grew by 6.3% to 85 million as of November 2022. Crypto wallets have seen increased patronage due to FTX’s failure.
According to new Huobi data, the number of crypto wallet users globally increased by 6.3% to 85 million by November 2022. According to the report, non-self-custodial wallets have the ability to introduce Web2 users to Web3. It was stated that these wallets were able to do so because they have reduced the onboarding process and the complexities associated with the cryptocurrency business.
Wallets, according to Huobi, have become “a must-have for new users to enter the crypto realm.” It is one of the most crucial infrastructures in the blockchain ecosystem, according to the company. Meanwhile, in 2022, crypto wallets made a total income of $1.398 billion. Within the following decade, profits are predicted to exceed $3 billion.
Several observers emphasized the need of self-custody during the recent FTX crash, which brought crypto wallet usage to the forefront. Several crypto hardware wallets, like Trezor and Ledger, have reported an increase in demand as a result of the FTX outbreak. During the peak of the run, sources suggested that around 15 million Bitcoin were placed in self-custody.
The adoption of Binance-backed Trust Wallet increased as CEO Changpeng ‘CZ’ Zhao emphasized the necessity of self-custody. Self-custody is a basic human right, according to CZ.
More Challenges for Crypto Wallets
Despite its triumphs in space in 2022, the ecosystem confronts a number of obstacles. Huobi emphasized three major issues for crypto wallets: user-friendliness, security, privacy, and legislation.
According to Huobi, most wallet brands have low user interaction. Furthermore, when ConsenSys (the parent firm of MetaMask and Infura) stated that it will gather users’ IP and ETH addresses, concerns about privacy invasion arose.
Meanwhile, CZ recently warned that around 99% of persons who attempted to self-custody their assets would lose them. He contended that these folks might not properly preserve or back up their security keys. He went on to say that there are other issues that consumers have with self-custody that a centralized exchange might be able to remedy.