Cryptocurrency Wallets Have Reached Their Next Stage of Development

The total number of digital wallet users will exceed 5.2 billion globally in 2026.

FREMONT, CA: The recent growth in digital wallets worldwide has been astounding. A study from Juniper Research showed that the total number of digital wallet users will exceed 5.2 billion globally in 2026, up from 3.4 billion in 2022. The research said that digital wallet use would continue to thrive in developing countries like Laos, which are considered cash-heavy.

While mobile banking apps are convenient, they still rely on a centralised banking system dominated by outdated paradigms. The majority of the new generation of digital wallets will be blockchain wallets, and they won't resemble any of the ones available right now.

Super Apps, Super Privacy

Web3-native wallets are some of the super apps leading the evolution of the digital wallet, connecting users to more than 3,700 apps across the crypto ecosystem. These platforms have seen significant growth worldwide, most notably the MetaMask wallet in Brazil, Indonesia, Russia, India, and Nigeria. It’s worth noting that the data on the Web3-native wallet is owned by, not a private company. It can’t be sold to advertisers or used by algorithms designed to sell products and services that may or may not need.

In the world of Web3, apps such as Daylight and DeBank read wallet data with permission, sign it over to them when connected to their app, and can revoke access at any time. Once connected, these apps can trace transactions and create a portfolio of holdings. They can also list the airdrops, votes in decentralised autonomous organisations, and other benefits the wallet is eligible for across blockchains.

However, Web3 apps require a non-trivial level of expertise. So, enter the centralised crypto exchange (CEX). Almost everyone getting started in crypto does so by buying tokens through one of the major CEX platforms. As a key gateway to the world of Web3, these platforms offer similar wallets designed for maximum ease of use.

A CEX wallet allows access to the same decentralised applications (DApps) as MetaMask and the like, but the exchange takes care of storing keys safely, paying fees, and auditing the DApps for safety. These exchanges are an essential step for users to explore the wider crypto ecosystem, with many of the complexities removed.

As the metaverse expands, digital wallets will evolve further. Earlier this year, Ethereum co-founder Vitalik Buterin introduced Soulbound NFTs, a new type of token standard that cannot be transferred once in a wallet. While the original ERC-721 NFTs can represent items on the blockchain, like collectible JPEGs, designer handbags, and other physical items, the new Soulbound NFTs could represent things such as university degrees and credit scores.