The recent rise of the cryptocurrency sector has ushered in a new crop of interested investors who want to benefit from the industry’s surging value. The entry of new investors is exhibited by the number of crypto wallets created amid the sustained bull run.
According to data compiled by Finbold, the digital assets custody platform Blockchain.com added a record 22.86 million unique crypto wallets between November 2020 and November 2021. During the period, the wallets grew 40.9% from 55.89 million recorded last year.
As of November 2019, the wallets stood at 43.15 million, growing 44.79% from November 2018’s figure of 29.80 million. Between 2017 and 2018, the highest growth rate was recorded at 62.3%. The data on unique crypto wallets created is extracted from the Blockchain.com charts page.
Surge in crypto sector inspires the creation of new wallets
Over the past year, the unique wallets activity highlights an influx of new users in the crypto sector as the value of digital assets like Bitcoin surged. Spikes in created crypto wallets usually coincide with rising prices during bullish periods. Overall, the trend of new crypto wallets created has been rising over the past few years, reflecting the sector’s progress.
From late 2020, there was a revived interest in cryptocurrencies, with the market embarking on an upward trajectory despite the slump recorded mid this year. Therefore, even during periods of corrections, the number of cryptocurrency wallets has continued to increase steadily.
Generally, the unique addresses are likely created by retail investors who wanted to profit from the sector as the fear of missing out sets in. Worth noting is that over the period, Bitcoin has surged in value by almost 350%.
Notably, two significant growth rates in unique wallets coincided with two phases of a spike in Bitcoin. For example, between 2017 and 2018, there was the highest growth rate after Bitcoin first attained an all-time high value of $20,000.
It is vital to point out that the high number of new unique wallets does not necessarily point to the entry of new investors. For instance, an individual investor can have several wallets under their name. Notably, the total number of wallet users worldwide is hard to estimate considering the heightened privacy.
Interestingly, the Blockchain.com platform has recorded a significant share of wallets considering that users have a wide range of wallets to choose from. Additionally, the number of wallets also stems from the Blockchain.com nature of the platform. It also has an open-source Bitcoin wallet that now supports more cryptocurrencies and stablecoins.
Crypto wallets driving mainstream adoption
In general, wallets are a necessity for cryptocurrency users, and their creation is a strong indication of how fast the popularity of decentralized digital money is growing. The record number of wallets created also highlights the mainstream adoption of cryptocurrencies. The wallets are the defining gateway to be involved in the decentralized web.
With the overall increase in crypto wallets, there is also a surge in security threats, driving an essential need for secure solutions to store and transfer digital assets. In recent months, cases of crypto wallets hacks and overall digital asset concerns have been crippling back into space. Fears still abound that the sector is susceptible to attacks.