The growth rate of installed cryptocurrency ATMs has plunged in 2022 amid a general market sell-off that has impacted the value of most digital assets.
Between Q1 2022 and Q2 2022, the number of new global crypto ATM installations dropped by 32.26% from 2,362 to 1,600 machines.
At the start of the year, there were 34,370 crypto ATMs while at the end of Q1, the figure stood at 36,732 machines. At the end of Q2, there were 37,642 installed ATMs, according to Coin ATM Radar data.
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Installations plunge amid market correction
Notably, crypto ATM installations accelerated in 2021 partly driven by the rising value of the market which has since plunged in 2022. For instance, Bitcoin dropped from it’s all-time high price of almost $68,000 in November last year by 70%. The asset is struggling to sustain its price above $20,000.
The market meltdown has consequently contributed to some crypto-related businesses to readjust their operations. Various entities have been forced to pause operations and restructure their plans awaiting a possible future market rally.
In general, crypto ATMs are contributing to the adoption of different assets in the mainstream. However, it is worth noting that ATM transactions only help investors procure cryptocurrencies against fiat currency but do not impact the overall liquidity.
Despite the market meltdown, 2022 has recorded a reduction in the number of countries willing to declare Bitcoin as a legal tender. For instance, the deployment of Bitcoin as a legal tender in El Salvador partly contributed to the spike in crypto ATM installations in 2021.
In this line, several countries in South America were speculated to be working on the framework for accepting Bitcoin as a legal tender. However, the discussions around the topic have cooled down.
The future of crypto ATMs
Interest will also be on how the installations play out in future considering the piling regulatory concerns. Notably, different jurisdictions are gearing up to enact a crypto regulatory framework that seeks to curb vices like money laundering.
Already, authorities have been warning about the use of crypto ATMs. In November last year, the Federal Bureau of Investigation (FBI) issued a warning against cybercriminals leveraging crypto ATMs and QR codes to defraud unsuspecting individuals. Such concerns might be addressed in new regulations hence likely to impact regulations.