According to a report from crypto exchange Huobi, Web2 users may be converted to Web3 adopters through the usage of non-self-custodial wallets.
The report suggests that this is possible due to the fact that digital wallets make both the onboarding and the intricacy of the crypto business much easier to navigate.
Wallets are “a must-have for new users to enter the crypto world,” Huobi stated. The company believes that it is one of the most important infrastructures that exists within the blockchain ecosystem.
In 2022, crypto wallets brought in a total of $1.398.0 billion in earnings for the exchange. Within the next ten years, it is anticipated that the earnings would exceed $3 billion.
Many crypto hardware wallets, including Trezor and Ledger, have reported an upsurge in demand as a result of the FTX crisis. Additionally, Binance’s Trust Wallet showed a rise in users as well.
However, even after the progress made in 2022, the cryptosphere continues to struggle with a number of problems. Huobi listed the three primary difficulties associated with cryptocurrency wallets as ease of use, privacy, and government oversight.
Huobi claims that the majority of wallet manufacturers do a bad job of communicating with their customers.
There have been concerns voiced about privacy being invaded after it was made public that ConsenSys, the parent firm of MetaMask and Infura, tracks users’ IP and ETH addresses following Dan Finlay’s clarification about the matter.
Crypto Wallet Usage Surged After FTX Implosion
Several specialists emphasized the importance of self-custody of cryptocurrency during the recent FTX implosion, which brought the topic of crypto wallet usage to the forefront.
During the most active period of the drive, reports indicated that approximately 15 million Bitcoin were moved into private storage.
Paxful CEO Ray Youssef recently expressed his full support for crypto self-custody. However, Binance exchange CEO Changpeng Zhao disagrees, arguing that storing digital assets in a cold wallet is riskier than storing them on a centralised exchange.
CZ deemed it necessary to make this comment public after significant stablecoin withdrawals were spotted on the Binance platform.
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