The Number of Cryptocurrency Wallets Is Growing Exponentially
Wallets are a necessity for cryptocurrency users and their creation is a strong indication of how fast the popularity of decentralized digital money grows. The number of crypto wallets and their users has been increasing rapidly since the creation of Bitcoin. Spikes usually coincide with rising cryptocurrency prices during bullish periods, but it’s worth noting that the general trend has always been positive, and has become exponential in the past few years.
Also read: Swiss Banks Team With Fintechs to Enter the Crypto Space
Sharp Increase of New Wallets in Q2, 2019
Market data provider Statista continuously tracks multiple indicators in the crypto space. The platform revealed that the number of blockchain wallet users has reached over 40 million at the end of the first half of 2019. That represents an enormous increase from less than 8 million users in the second quarter of 2016, as per the report. The numbers look even more staggering when you realize the study is based on the growth registered by a single company, Blockchain.com.
The well-known provider of crypto products offers one of the popular wallet clients on the market which supports bitcoin cash (BCH) among other cryptocurrencies. The total number of wallet users worldwide is hard to estimate, but in the past three years alone, Blockchain.com has recorded a five-fold increase in its wallet users. Blockchain.com’s own more recent data shows the user count has reached over 42 million, as of September 25.
Looking at the graph in the Statista report, two pronounced spikes in the number of new wallets can be seen during the examined period. The first one occurred between the third and fourth quarter of 2017. It coincided with the rise in the price of digital assets at the time. The second jump was registered in Q2 of 2019, when Blockchain wallet users increased by around 6 million. The chart published on the Blockchain.com website shows a steady increase until around the beginning of 2016, after which the growth became exponential.
A Choice of Wallets Available to Crypto Users
A wide and expanding choice of cryptocurrency wallets is available to users nowadays. From hardware devices that feature improved security, such as Ledger and Trezor, to multiple software applications providing greater everyday usability, like Electrum, Exodus and Jaxx.
Popular custodial platforms have also been registering significant growth of their users over the past couple of years. For example, U.S. crypto wallet and trading service provider Coinbase now claims to have over 30 million users. When it stopped publishing detailed user data on its website in November 2017, the exchange had around 13 million customers with 45 million cryptocurrency wallets.
After the bearish 2018, which put the whole crypto industry in a difficult spot, this year brought a revived interest in cryptocurrencies. Markets began their upward movement in April and remained mostly positive and stable up until the recent modest decline. Throughout the year, even during periods of setbacks, the number of cryptocurrency wallets has continued to increase steadily.
Bitcoin.com’s own offering is no exception. Downloads of the Bitcoin.com Wallet, which was introduced in August 2017, have more than doubled since last year to over 4.7 million at the time of writing. The light mobile client is available for Android and iOS devices.
The wallet supports bitcoin cash (BCH) and bitcoin core (BTC) and comes with many useful features allowing you to purchase and exchange cryptocurrency from the app. If you are looking for a desktop version, Bitcoin.com recommends the Badger Wallet.
Do you think the number of cryptocurrency wallets and users will continue to grow exponentially? Tell us in the comments section below.
Images courtesy of Shutterstock, Statista, Blockchain.com, Bitcoin.com.
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