Cryptocurrency enthusiasts are increasingly juggling multiple digital wallets, with a notable 16% rise in multi-wallet usage among users over the past year. This trend, primarily driven by the fragmented nature of blockchain ecosystems, underscores the ongoing challenges of mainstream adoption. According to a recent report by onchain user experience platform Reown and crypto intelligence firm Nansen, a staggering 62% of crypto users have used at least two wallets in the past three months—up from 45% in 2024.
Navigating the Maze of Interoperability
The complex landscape of blockchain networks often necessitates multiple wallets, each tailored for different ecosystems. This complexity is not without its pitfalls; users cite security (18%) and poor user experience (10.6%) as significant concerns when managing their digital assets. Eowyn Chen, CEO of Trust Wallet, highlights this pivotal juncture in wallet user experience (UX), stating, “The next wave of users, especially those coming from traditional Web2 or emerging markets, are bringing new expectations that challenge how we design tools and interfaces.”
In this evolving scenario, wallets are no longer mere repositories for digital assets. They are transforming into sophisticated gateways to Web3 services—encompassing digital identity, financial products, governance, and even gaming. Chen envisions a future where wallets evolve into intelligent, personal companions, capable of understanding user behavior and preferences. The integration of artificial intelligence (AI) could play a crucial role, potentially streamlining navigation and mitigating risks like phishing scams—a sentiment echoed by recent reports of a $330 million Bitcoin heist involving social engineering.
Mobile Wallets Lead, But Hardware Options Gain Ground
Amidst these shifts, user preferences for wallet types are also evolving. The Reown-Nansen survey reveals that mobile wallets remain dominant, favored by 51% of participants. However, this marks a slight decline from 54.8% in 2024. Meanwhile, hardware wallets—often viewed as a more secure option—are gradually gaining traction, with 10% of respondents opting for them, up from 7% a year prior. This growth is primarily driven by advanced users seeking enhanced security, although just 3% of new investors have ventured into hardware wallets.
Derek Rein, Chief Technical Officer at Reown, points to the burgeoning role of social wallets. These wallets, which connect to a user’s email or social account, eschew traditional seed phrases, thus simplifying the onboarding process. Rein notes, “Crucially, they prioritize simple, easy design; users shouldn’t need to understand gas tokens or chain switching just to transact.” Yet, despite these innovations, apprehension lingers, with 39% of users expressing that improved security and trust are prerequisites for embracing social wallets.
A Fragmented Future or a Unified Vision?
While the crypto market continues to grapple with fragmentation, the possible integration of AI into wallet design offers a glimmer of hope. By transforming wallets into intuitive, personalized platforms, AI could potentially bridge the gaps in user experience and security. However, whether AI can fully address the underlying interoperability issues remains an open question.
The current trends suggest a bifurcated market—one where mobile wallets cater to ease of use, while more robust hardware solutions appeal to security-conscious users. As the landscape evolves, the crypto community faces the dual challenge of enhancing user experience while bolstering trust and security. The future of crypto wallets may hinge on achieving this delicate balance, raising questions about whether the industry can unify its disparate elements into a cohesive whole.
In a rapidly transforming landscape, will AI deliver the breakthrough needed to streamline user experiences, or will the market remain a patchwork of competing solutions? As the industry ponders these questions, the journey towards a seamless and secure crypto ecosystem continues.
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This article is based on: Multi-wallet usage up 16%, but AI may address crypto fragmentation gap
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
