In the context of the increasingly developed and fragmented crypto market, a new report from Reown and Nansen shows that up to 62% of cryptocurrency users are currently managing two or more wallets, a sharp increase of 15% compared to last year. This figure not only reflects the increasingly complex technology usage habits but also highlights the challenges and opportunities for the blockchain industry in improving user experience (UX) and security.
Fragmented ecosystem – Users are forced to have multiple wallets
The survey conducted by #YouGov on 1,000 active crypto users in the US and UK showed that nearly half (48%) of them use multiple wallets because they need access to different networks or blockchains – such as Ethereum, BNB Chain, Solana, Arbitrum, etc. This reflects a clear fragmentation in the current infrastructure: each chain has different standards, tokens, and user experiences, forcing users to 'split' their portfolio across multiple wallets to be compatible.
In addition to technical reasons, security is also a key motivating factor. Up to 44% of users reported using multiple wallets as a risk mitigation strategy – a significant increase from 32.8% in 2024. Dividing assets across multiple wallets helps minimize losses if one wallet is attacked or malfunctions.
What do users need from a crypto wallet?
The report shows a clear trend: users want crypto wallets to support multiple chains and tokens while ensuring simplicity and safety. Up to 40% of survey participants consider the ability to support multiple networks and assets as the top factor when choosing a wallet.
Jess Houlgrave – CEO of Reown – stated:
"Users do not want to completely change the way they interact with wallets, applications, or blockchains. They simply need a fast, simple experience that fits their current habits."
This is also the reason why wallet platforms are continuously innovating to address liquidity fragmentation, minimize gas costs, and connect wallets to applications seamlessly. According to Houlgrave, the past year has seen "a strong wave of innovation" from wallet platforms as they gradually improve two challenging criteria: good UX and high security.
Knowledge gap: Users still do not understand 'smart wallets'
Despite the clear trend of innovation, the report also points out a "significant knowledge gap". Specifically, 58% of respondents indicated they do not understand how smart wallets (#smartwallet ) work. This suggests that the market still needs greater efforts from developers to help mainstream users access new technologies in an understandable way, rather than just focusing on technical features.
Although mobile wallets remain the most popular means of storing digital assets, usage rates have decreased from 54.8% to 51%, while hardware wallets have slightly increased to 10% – a testament to users increasingly valuing physical security.
Impact on the market and Binance users
For Binance users, the trend of using multiple wallets also raises several important questions:
Should they allocate their assets across multiple wallets for optimal security?
Are they using the right type of wallet for each purpose (transactions, long-term storage, connecting to DApps)?
Are integrated wallets on BNB Chain sufficient to minimize fragmentation?
The truth is: if wallets increasingly integrate multiple chains, have good UX, and easily connect with apps like wallets on Binance Smart Chain, users will need less to use additional external wallets. But currently, using hot wallets, cold wallets, and multi-chain wallets in parallel is still common and somewhat necessary in the context of a fragmented ecosystem.
Conclusion:
Crypto users are becoming increasingly proactive and smarter in how they manage digital assets – evidenced by their use of multiple wallets not just out of necessity, but also as a security strategy. This shows a clear shift from the mindset of 'buy and hold' to a more flexible and cautious approach.
However, for the market to develop sustainably, wallet developers need to bridge the knowledge gap, simplify UX, and create a more seamless experience. Crypto will only achieve mass adoption if users do not have to 'learn programming' to use wallets safely.
Risk warning: Investing in digital assets carries high risks, especially with self-custody products like hardware wallets or decentralized wallets. Ensure you understand the technology you are using and only invest capital you can afford to lose. Crypto is not suitable for everyone.
