The FTX collapse and free-falling price of cryptocurrencies are starting to spook retail investors.
Bitcoin dropped 77 percent from its trading peak in November of last year.
Solana, which was trading over $230 in December 2021, has crashed all the way to $11.02 in November 2022. Other cryptocurrencies, like LUNA and Dogecoin, have lost nearly all of their value during that time frame as well. In fact, LUNA dropped from a $20 billion market cap to a little over zero in just a couple of days.
As a result, the crypto market has been unable to attract new investors, as evidenced by the number of downloads for crypto apps, which have been on the decline for the past year.
According to data from Statista, sourced by Fair Betting Sites, downloads for crypto wallets have dropped by 48 percent year-over-year and 20 percent over the last month.
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Crypto Wallet Downloads Decline By 48% YoY from Oct. ‘21 to Oct. ‘22
Crypto wallets have been one of the easiest ways to get into the world of digital currency. The wallets have emerged as an easy way for buyers to store their cryptocurrency and other digital assets.
Crypto wallet downloads hit a high in May 2021 with 25,689,217 downloads. At the time, the price of Bitcoin was $57,792.17.
2021 set a new high for the most crypto wallet downloads ever. In 2020, the total number of crypto wallet downloads was 32.95 million, and by 2021, the yearly count was at 177.85 million resulting in 453.12% of growth in one year.
However, from October 2021 to October 2022, the number of crypto wallets has declined by 48%. There have been only 102.06 million crypto wallet downloads worldwide in 2022. While the crypto winter and the fall of FTX may have a huge part to play in this, wallet downloads have been almost cut in half compared to what they were the previous year.
Crypto Wallet Downloads Drop 20% From September to October 2022
In 2022, January had the highest number of downloads at 16.11 million. The number of downloads by month steadily declined thereafter, reaching an all time low of the year in July at 7.45 million downloads.
The number of crypto wallet downloads isn’t limited to only new users, as many individual investors have several wallets. Still, that hasn’t stopped downloads from taking a steep decline in 2022.
From September 2022 to October 2022, the number of crypto wallets dropped again by 20%, falling from 10.92 million to 8.7 million.
For now, it seems like the growth of crypto wallets tends to mimic the general market. The crypto wallet boom peaked in 2021 when Bitcoin reached an all time high at $69,000.
Since then, consumer confidence in digital assets hasn’t been as strong, which has led to a drop in the price of cryptocurrencies, along with fewer investors opening new crypto wallets.