A new report shows that 62% of crypto users manage multiple wallets, reflecting fragmentation in the space. It highlights limited understanding of smart wallets, despite 70% of users feeling secure using crypto. The analysis reveals a gap in UX amidst rising wallet adoption, with many users prioritising security over convenience. Bitcoin remains the most held token but payments are not the main use case for the majority of users.
A recently published report highlights a notable trend in the cryptocurrency space: 62% of users manage multiple wallets, which underscores significant fragmentation in the on-chain user experience. Compiled by Reown and the analytics firm Nansen, this report draws from a YouGov survey and on-chain data, featuring insights from over 1,000 active crypto users in the US and UK. The findings depict an ecosystem that is expanding but remains splintered, with complexity often outpacing usability.
According to the survey, many users resort to multiple wallets primarily due to interoperability challenges, security concerns, and the limited features offered by individual wallets. A striking 58% of respondents admitted they are unclear on how smart wallets operate, revealing a gap in user experience (UX) and understanding within the industry. While more people are adopting mobile wallets, experienced users are leaning towards hardware wallets and custodial solutions from exchanges like Binance, indicating a shift in what users prioritise: convenience or security.
Interestingly, Bitcoin still commands the highest user adoption rate, with 64% of users holding it, and stablecoin usage has surged to 37%. Yet, only 12% of participants indicated that payments serve as their primary purpose for using cryptocurrencies. The report highlights growing interest in specialised chains like Solana and Base, although adoption rates for Layer-2 solutions remain low, pointing to limitations in cross-chain interoperability.
Jess Houlgrave, CEO of Reown, commented on the findings stating, “From wallet complexity to misunderstood smart accounts, we see that the growth in crypto usage isn’t being matched by simplicity.” Meanwhile, security perceptions appear to have improved—69% of users now feel safe using cryptocurrencies—however, there seems to be persistent confusion surrounding crucial tools and technologies like chain abstraction and smart contract security.
Alex Svanevik, CEO of Nansen, echoed these concerns, noting that the fragmented behaviours observed across different blockchains highlight an urgent need for unified improvements in user experience. The report reveals a complex landscape where expanding usage is often marred by the lack of clear education and simplified processes available to users.
