If you're like me, you've witnessed cryptocurrency wallets evolve from niche products into indispensable super applications that shape how millions of people around the world interact with blockchain technologies.
But I wanted to see that in the data. So, I found the new report from Dune Analytics and Addressable.io.
Now, after diving deep into the Dune and Addressable report "Cryptocurrency Wallets 2025," three transformative axes stand out: the innovation of smart wallets, the evolution of wallets into super financial applications, and clear geographical trends shaping wallet adoption.
Mats Olsen, co-founder and CTO of Dune, explained to me: "At Dune, we believe that data is the cornerstone of innovation in Web3. Our mission has always been to make cryptocurrency data accessible. It is important to note that wallet data is not just an analytics tool, but the foundation for building smarter, more user-friendly applications that empower users to manage and navigate their digital lives."
Let's explore these radical shifts and their impact on the future of cryptocurrency.
1. Smart wallets are no longer optional - they are becoming the new virtual cryptocurrency wallet.
Smart wallets provide a better user experience for cryptocurrencies. These smart wallets work thanks to a new technology called account abstraction and a technique known as ERC-4337. These wallets allow wallets to perform more advanced functions - such as letting you log in without a password, conducting transactions without paying fees yourself, and even recovering your wallet if you lose access.
The Dune and Addressable report shed light on the fundamentals of smart wallets.
What is the most prominent growth story? The Coinbase smart wallet, which saw its weekly active user count rise from 15,000 in January 2025 to over 40,000 by April 2025, largely due to its native integration with Base, Coinbase's layer two. This shift - integrating application + on-chain execution - has positioned it as the leading consumer-facing smart wallet.
Base has emerged as a leading network in smart wallet activity, capturing over 65% of smart account deployments and 87% of total user transactions by April 2025. It has become the preferred execution layer for high-frequency and low-cost smart wallet usage.
Despite Safe's dominance in initial deployment numbers - 43 million accounts and a 63% market share - many of these are backend applications, such as those automatically deployed by applications like Worldcoin. In contrast, platforms like Coinbase Smart Wallet are seeing direct consumer usage and growth in retention rates, with user return rates now approaching 60%.
So, what's the takeaway? Smart wallets are transitioning from mere technical innovations to a foundational pillar of infrastructure. Whether embedded in applications or enabling direct user interactions, they are shaping the contours of the next era of Web3 integration.
2. Cryptocurrency wallets are becoming super Web3 applications.
Just as super apps in Asia - like WeChat or Grab - bring everything from payments to messaging into one application, cryptocurrency wallets are transforming into comprehensive super financial applications. They are becoming major hubs through which users can manage all aspects of their digital lives.
But what exactly are these wallets doing, and why are they important?
Today's wallets go beyond token storage. They now offer integrated tools that streamline, accelerate, and enhance interaction with cryptocurrencies:
Token swapping: This allows users to exchange one cryptocurrency for another - such as trading Ethereum for USD - directly within the wallet. No need for a centralized exchange. It's fast, user-controlled, and keeps funds secure.
Earning staking rewards: In some blockchains, users can "stake" their tokens to help run the network. In return, they earn passive income - similar to interest, but on the blockchain.
Cross-chain asset linking: Users can transfer tokens between different blockchains (like Ethereum to Solana) without leaving the wallet. This provides access to more applications, communities, and opportunities across the Web3 ecosystem.
Accessing decentralized finance applications: Wallets now directly connect to decentralized finance platforms, allowing users to lend, borrow, and invest without relying on banks or traditional intermediaries.
Playing blockchain games: With the increasing popularity of digital assets on the blockchain, wallets have become the gateway to blockchain-based games. Players can store, use, and trade digital items, all from one place.
These services previously required the use of multiple platforms and tools. Now, they are available with just a few clicks from a single wallet.
And reliance on them has become a tangible reality:
The Binance wallet now conducts over 33 million token exchanges weekly, with transaction volumes nearing $9 billion. Meanwhile, Phantom, a wallet specifically designed for Solana, has achieved 10 million weekly exchanges, representing about 20% of Solana's total network activity at peak times.
This transformation is supported by infrastructure providers like Privy and Reown. For instance, Privy allows applications to create secure wallets upon login, in less than 200 milliseconds. This makes it easier for new users to get started and for developers to build customized wallet experiences.
Did you know that AI clients now have their own cryptocurrency wallets?
In short, wallets are no longer just tools for cryptocurrency enthusiasts; they are rapidly becoming the super financial applications of Web3, combining banking, investing, gaming, and identity into a single streamlined experience.
3. Geographical patterns reveal cryptocurrency wallet adoption strategies.
One of the striking findings revealed by the Dune Analytics and Addressable report is the clear geographical diversity in wallet adoption.
In Asia, custodial wallets like OKX and Bitget dominate, thanks to their ease of use and strong local brand recognition. OKX alone controls a significant share of wallet capital in countries like South Korea and China, highlighting trust in custodial models in these regions.
On the other hand, non-custodial wallets like MetaMask and Phantom have established a strong global user base, especially in emerging markets. Nigeria, India, Indonesia, and Vietnam consistently rank among the leading countries in wallet usage.
Here's the surprise: While user numbers are soaring in these regions, capital concentration still strongly leans towards advanced markets like the United States, South Korea, and Europe.
In a conversation with Asaf Nadler, COO and co-founder of Addressable, he revealed more findings. He said, "This report represents the first time we have been able to explore tangible user behavior for over 20 leading wallets across 15 million users, thanks to Addressable's ability to match wallets with real individuals and their behaviors. User data revealed two critically important insights: First, emerging markets like Nigeria and India are not only participating but are leading global cryptocurrency adoption, and they may deserve much greater strategic focus; second, the wallet landscape is extremely saturated, with fewer than 10 players dominating user market share. These findings reshape our perspective on growth, competition, and future prospects for cryptocurrency adoption."
This dual dynamic casts striking strategic implications. Wallet providers must balance user acquisition strategies in emerging markets with high capital management strategies in advanced regions. It’s a complex yet exciting balancing act that will shape the future growth trajectory of wallet systems.
Cryptocurrency wallets at the heart of their next era
If you have been following cryptocurrency trends, it is clear that wallets are no longer marginal; they have become essential in the user journey and the adoption of blockchain technology. Smart wallets are rapidly becoming foundational infrastructure, and the functions of super financial applications are redefining user expectations, while geographical diversification shapes global adoption strategies.
As we look to the future, I see wallets as more than just storage or transaction tools; they are comprehensive gateways redefining digital identity, financial inclusion, and ease of use of cryptocurrencies globally. As the lines between traditional financial services, Web3 infrastructure, and seamless user experience continue to blur, wallets will undoubtedly remain at the heart of cryptocurrency innovation.
So, what's next? With standards like EIP-7702 from Ethereum, which enable even traditional wallet users to upgrade to programmable smart accounts, we are entering a new era where wallets become smarter, more versatile, and better integrated with every digital interaction.
Prepare well - wallets are not just evolving; they are transforming cryptocurrencies from a niche currency into a mainstream currency before our eyes.
Forbes
