Due to the fact that the cryptocurrency market has been in the throes of a protracted bear market for the bulk of the last year, cryptocurrency applications have also witnessed a fall in interest, as seen by a considerable reduction in the number of app downloads.
Although cash advance apps have grown 69% year-over-year (YoY), more than other fintech sectors, the performance of crypto and retail investing apps was trending downward. Indeed, cryptocurrency trading and crypto wallet app downloads fell 55% YoY through Q3, according to data from Apptopia published on September 19.
The report notes that:
“Certain sectors of the fintech industry are being hit harder than others, while some are growing as opportunity (via inflation) presents itself.”
With money limited for plenty of people and the day-to-day costs increasing. It has also been claimed that individuals use “buy now, pay later” options for grocery shopping. The increase of new users, as seen by the above estimations about downloads from Apptopia, demonstrates that individuals are seeking to buy products they do not already have the cash flow for.
Crypto app downloads on the decline
Notably, a year ago, Finbold reported that crypto apps surpassed 50% of all U.S. investment app downloads in H1 2021. Cryptocurrency apps dominated the share of the United States’ top 50 asset management apps during the first half of 2021 at 51%, representing 2.6 times growth from 2020’s figure of 19%.
However, it’s worth pointing out that the growth in cryptocurrency trading app downloads correlated with a growing digital currency market. The increasing adoption and cryptocurrency investment occasioned growth.
Since then, the market has taken another direction. With scams ever present with the FBI warning fake crypto apps cost investors up to $43 million, investors and traders are not downloading as they once were in the more challenging financial times.