Blockchain.com adds a record 22 million unique crypto wallets in a year

Blockchain.com adds a record 22 million unique crypto wallets in a year

The recent rise of the cryptocurrency sector has ushered in a new wave of eager investors looking to capitalise on the industry's rising value. The number of crypto wallets created during the sustained bull run demonstrates the entry of new investors.

According to Finbold data, Blockchain.com, a digital asset custody platform, added a record 22.86 million unique crypto wallets between November 2020 and November 2021. Wallets increased 40.9 percent during the period, from 55.89 million last year.

The wallets stood at 43.15 million in November 2019, up 44.79% from 29.80 million in November 2018. The highest growth rate was 62.3% between 2017 and 2018. The information on the number of unique crypto wallets created is derived from the Blockchain.com charts page.

The surge in the crypto sector inspires the development of new wallets.

The activity of unique wallets over the last year reflects an influx of new users in the crypto sector as the value of digital assets such as Bitcoin has risen. During bullish periods, increases in newly created crypto wallets usually coincide with rising prices. Overall, the number of new crypto wallets created has increased in recent years, reflecting the sector's progress.

There was a resurgence of interest in cryptocurrencies beginning in late 2020, with the market resuming its upward trajectory despite the slump recorded in the middle of this year. As a result, even during periods of correction, the number of cryptocurrency wallets has steadily increased.

In general, the unique addresses were most likely created by retail investors looking to profit from the sector as the fear of missing out set in. It is worth noting that the value of Bitcoin has increased by nearly 350% during this time period.

Notably, two significant growth rates in unique wallets corresponded to two phases of a Bitcoin spike. For example, after Bitcoin first reached an all-time high of $20,000 in 2017, the highest growth rate occurred between 2017 and 2018.

It is critical to note that the large number of new unique wallets does not always imply the entry of new investors. For example, an individual investor may have multiple wallets in their name. Notably, because of the increased privacy, it is difficult to estimate the total number of wallet users worldwide.

Interestingly, despite the fact that users have a wide range of wallets to choose from, the Blockchain.com platform has recorded a significant share of wallets. Furthermore, the platform's Blockchain.com nature contributes to the high number of wallets. It also includes an open-source Bitcoin wallet that now supports additional cryptocurrencies and stablecoins.

Crypto wallets are propelling mainstream adoption.

In general, wallets are required for cryptocurrency users, and their development is a strong indicator of how quickly the popularity of decentralised digital money is growing. The record number of wallets created also demonstrates the widespread acceptance of cryptocurrencies. Wallets are the primary entry point into the decentralised web.

With the overall increase in crypto wallets comes an increase in security threats, necessitating the need for secure solutions to store and transfer digital assets. Cases of crypto wallet hacks and overall digital asset concerns have been crippling back into space in recent months. There is still widespread concern that the sector is vulnerable to cyber-attacks.