Nowadays, crypto lovers have been gradually shifting the demand for using cryptocurrencies to the DeFi space to optimize profits such as staking, yield farming, borrowing... Since then, demands for Cryptocurrency wallets to interact with DeFi also increased, showing the rising potential of cryptocurrency wallets. In this article BHO Network will provide you with some information about the growth potential of cryptocurrency wallets.

Market size of crypto wallets

According to expert assessments and reported statistics on cryptocurrency wallets, this market size globally is valued at 6.97 billion USD in 2021, and is expected to expand at a compound annual growth (CAGR) rate of 24.4% from 2022 to 2030.

Crypto wallets come in many forms, including hardware wallets, software wallets, and more. Cryptocurrencies will be stored on the blockchain and can only be accessed using the private keys stored in the crypto wallet. These private keys are proof of ownership, and therefore protecting them is essential. The strong security offered by crypto wallets is expected to boost their demands, thus driving the future growth of the crypto wallet market.

Growth drive

As of August 2022, the number of crypto wallet users has reached 84.02 million worldwide, from 76.32 million users in August 2021. The rise in the use of crypto wallets could be due to the increasing use of cryptocurrencies. The number of crypto buyers has now grown more than ever. With more people buying cryptocurrencies, companies are now offering digital payment options across all channels.

In addition, increasing competition in the banking sector, distrust of banks and the traditional financial system, and the rise in money laundering activities are reasons why the use of cryptocurrencies tend to go up. The growing adoption of cryptocurrencies will drive the adoption of personal crypto wallets.

The number of financially savvy and tech-savvy people has also soared over the past few years. This helps contribute to greater adoption of cryptocurrency and its infrastructure, such as crypto wallets. With the growing demand for cryptocurrencies, the number of merchants offering crypto payment options has also surged significantly. This is the driving force for crypto wallets to constantly develop in terms of their security features and technologies, creating opportunities for growth in the market.

The challenge of crypto wallets

In August 2022, the crypto wallet Solana faced a major cyber attack that resulted in over 8000 wallets being compromised.

According to PeckShield’s official report, although the total amount of funds lost in the attack is unclear, at least four of the hacked Solana wallets took away more than $8 million from users.

Vulnerabilities related to crypto wallets are a major challenge in the development of the cryptocurrency market.

Crypto wallets may have their own security vulnerabilities that may or may not be known.

In certain cases, even if the computer is not connected to any network, it can still be attacked. Therefore, crypto wallet developers need to find the most optimal solutions to make crypto wallets safer and more secure.

Currently, BHO Network is also providing a cryptocurrency wallet - 3S Wallet - with simple, secure and safe criteria to help you easily use transactions and store your assets (coins/tokens). In addition, 3S Wallet also has outstanding features such as supporting multi-chain transactions, one-touch interface, optimizing user experience, etc. You can learn more and use it here.

Above is the information about the potential growth of crypto wallets that BHO Network wants to provide. The market of crypto wallets has vast potential and is on track to grow even stronger. These are also the criteria that investors need to know when choosing and investing in crypto wallet development projects and companies.