Crypto Users Juggle Multiple Wallets as Complexity Rises 16%

Cryptocurrency adoption faces significant hurdles due to fragmentation and complex user experiences, as highlighted in a recent industry report. The lack of interoperability across different blockchains necessitates users to manage multiple wallets, with the number of users employing at least two wallets increasing by 16% over the past year. According to a report by onchain user experience platform Reown and crypto intelligence firm Nansen, 62% of crypto users reported using at least two wallets over the past three months, up from 45% in 2024. This trend underscores the growing complexity and the need for more integrated solutions in the crypto space.

Security and user experience remain top concerns for crypto users. More than 18% of respondents cited security as their primary worry, while 10.6% pointed to poor user experience as a major issue. These concerns highlight the need for more robust and user-friendly wallet solutions that can address both security and usability challenges.

AI integration is emerging as a potential breakthrough for crypto wallets. Eowyn Chen, the CEO at Trust Wallet, noted that wallets are evolving from simple asset storage tools to primary gateways for Web3 services, including digital identity, financial products, governance, and gaming. Chen emphasized that integrating AI agents could help users navigate Web3 as easily as they shop online, while also reducing risks from scams such as phishing attacks. These scams often involve tricking victims into sending assets to fake wallet addresses, making security a critical concern.

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The importance of robust wallets was underscored by a recent incident where an unknown attacker stole $330 million worth of Bitcoin in a social engineering scam from an elderly US citizen. This event highlights the vulnerabilities in current wallet systems and the urgent need for more secure solutions.

Mobile wallets continue to dominate the market, with 51% of users preferring them, down slightly from 54.8% in 2024. Hardware wallets are gaining traction, with 10% of respondents preferring them, up from 7% a year ago. However, only 3% of new investors reported using a hardware wallet, indicating that hardware wallets are still primarily used by more advanced crypto users. Social wallets, which are connected to a user’s email or other social account and require no seed phrase, have transformed onboarding and are at the forefront of user experience innovation. These wallets prioritize simple, easy design, ensuring that users do not need to understand complex concepts like gas tokens or chain switching just to transact.

Despite the advancements, users remain hesitant about adopting social wallets, with 39% of surveyed respondents stating that improved security and trust would help them adopt these wallets. This hesitation underscores the need for continued innovation and improvement in wallet security and user experience to drive broader adoption of cryptocurrency.