DeFi boom, what opportunity for the crypto wallet market?

During the uptrend, most tokens are already x10, x20, especially AMM tokens. So, when the DeFi fever is showing signs of saturation, which destination can be considered as potential in the near future? Let’s take a look at a very interesting and very potential option, which is the crypto wallet market.

What is the potential, what is the opportunity?

First of all, let’s take a look at the reasons that can make the cryptocurrency wallet market really a potential land that not many people pay attention to.

DeFi boom, what opportunity for crypto wallets?

First, the most obvious thing is the very strong growth of AMM platforms, causing families to farm and people to farm. In addition, most swap platforms have another specialty that is unlisted tokens. This is the goal that many people aim to be able to xxx accounts after the token is “listed in Bainen”.

As trading on swap platforms explodes, the need to connect via crypto wallets will grow even greater. More specifically, these new market entrants will soon have a huge competitive advantage, because it is partly imprinted on the intuition of many users. Typical for these names is Trust Wallet or MetaMask.

However, to say that the market is being dominated and saturated is too true. The advent of diverse blockchains will partly open up a new requirement for cross-chain (multi-chain) transactions, and at the same time create more competitive dynamics to boost the wallet market that may explode in the near future. next.

The interest of many big men

In addition to the great potential demand in the future, cryptocurrency wallets are also interested in investing by many big players in the market. Math Wallet was funded by Binance and even increased many times when it was listed on the FTX exchange.

In addition, Huobi is currently developing Huobi Wallet to create its own ecosystem at Heco Chain.

Not many use cases have been published yet
Currently, there are not many published uses for wallet tokens. Usually, most of these tokens are only used to airdrop to attract users. Some other tokens are allowed to stake to farm new tokens on AMMs.

The question is, once the use cases of these wallets are published more, will the xxx increase like AMM tokens be restored?

Often, once a token has been issued, which is essentially a financial game, projects (or the organizations behind them) will one way or another try to utilize the token as an effective fundraising channel.

So what’s better than drawing many applications for tokens to raise money?

However, another scenario if not many use cases are announced, is that wallet tokens will be operated under the model of a technology stock. This means that, when the wallet product develops well, the user base and market share is large, a lot of investment information from the funds, the wallet token will automatically increase in price just like a normal technology company.

The market is still “perfectly competitive”

The current wallet market has not reached the saturation point and is still in the development stage when no one name really “dominates the market” with an overwhelming proportion of the rest. This could be for two main reasons.

One is because the current chains are so diverse that they grow at a too fast rate. Maybe MetaMask is popular in Ethereum because of its long-standing roots, but when it comes to BSC, the game is for Trust with certain favors from Binance.

The second is that the wallet is not a product with a high “network” effect. For example, social networking is a type of product that requires a high level of “networking”. Users do not want to move away from Facebook, simply because of their friends, carrying a network around them, they use facebook too much and if they move to another social network, who will click like for them? However, cryptocurrency wallets are still a product that has not been highly “networked”. Users of wallet A can still transfer funds to users of wallet, so the market fragmentation is an inevitable consequence.

So what if there was a name capable of creating a network effect like Momo in the traditional financial world? What dominant genetic property would make such a product possible in the future? These questions will probably take time to be completely answered.

The above is general information to help readers have an overview of a relatively new market, the cryptocurrency wallet. Hopefully, the problems posed in the article will be able to partly suggest something for readers in the near future of the market.

Note, the above article is for informational purposes only and should not be considered investment advice.

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