Decentralized finance, social crypto3, and consumer crypto have been three of the major trends gaining momentum in the blockchain ecosystem. Designers and product experts from major tech companies are flocking to cryptocurrency companies to help build seamless experiences to accommodate the next wave of mainstream cryptocurrency adoption.
According to the January 2022 crypto.com market size report, the number of global cryptocurrency owners reached 200 million people in 2021. During the second half of 2021, the global cryptocurrency market grew by 37.5%. In total, in 2021, the global cryptocurrency population grew by a staggering 178%, rising from 106 million in January to 295 million in December of that year. After several catastrophic events in 2022, including the collapse of BlockFi, 3AC, and several hacks, culminating in the FTX disaster, the cryptocurrency market has seen a downward trend, in parallel with the global macroeconomic environment.
But as is commonly said in the cryptocurrency community, a bear market is for builders, and 2023 has proven that building crypto products can lead to a market recovery. Companies have continued to develop applications and infrastructure, and research and standardization solutions have advanced significantly. As infrastructure advances, consumer cryptocurrencies — that is, consumer-facing applications that leverage blockchain technology but don't require arduous learning or setup — have been able to emerge and gain traction. We are now in the second quarter of 2024, have entered a new bull market, people are flocking to cryptocurrencies again, and this time, the technology is ready to welcome the masses.
Cryptocurrency wallets are at the heart of mainstream adoption and are useful for consumer cryptocurrencies, decentralized finance, and web-based social media. Wallets, or clients, as they are technically known, are applications that connect users to different blockchains. Native Web3 wallets allow users to self-hold their funds, meaning no one else can access your wallet allowing you to have full control over your cryptocurrencies and actions.
Here is a list of some of the best ones, and why you should choose them.
First driving feature: MetaMask
The open source MetaMask wallet allows connection not only to EthereumETH, as it was originally designed, but also to layer 2 blockchains (faster, less expensive chains that feed Ethereum) and other chains such as AvalancheAVAX or PolkadotDOT. It allows for in-wallet trading (although, based on testing, trading on the MetaMask wallet is more expensive than trading on a decentralized exchange like UniswapUNI), and it recently integrated an Ethereum stake into the wallet. MetaMask, a Consensys studio (the project studio behind many Ethereum-based innovations), was particularly praised for its role in the Ethereum ecosystem, as it was primarily designed for assets on this blockchain.
Works on: Mobile and browser (iOS and Android)
Pros: Very popular, open source, offers staking
Cons: Difficult user experience, especially for NFTs
New, stylish and infinitely versatile: the family
Family wallet
Photo courtesy of the family
Although Family is still in beta testing, it is emerging as a strong contender in ease of use, security, and versatility. Including new features such as “Wallet Monitoring” – a popular activity in the cryptocurrency geek community, which involves monitoring the blockchain activity of relevant wallets – along with notifications, swaps, wallet-to-wallet messaging and a best-in-class interface for viewing your favorite NFTs. Family was recently acquired by one of the top DeFi and Web3 Social companies, Avara, formerly known as AAVEAAVE Companies, a move that not only increased their profile, but also allowed developers to continue improving the product at a faster pace. Since Avara is the main developer of the web3 social protocol Lens, Family is the wallet of choice if you are interested in web3 social platforms. In addition, the user experience, as users say, It's so exhilarating.
Works on: iOS devices (MacBook, iPhone, iPad)
Pros: Great for displaying NFTs, fast transactions, secure, and provides easy key backups
Cons: No stakes in the wallet
Fun, gamified, and NFT-friendly NFT: Rainbow
Rainbow Wallet gained rapid popularity in 2020 due to its simplicity, fun design, ease of use and open source database, Rainbow Wallet continues to be a favorite among the web3 crowd. The instant and fast in-wallet swaps and ETH price prediction, as well as instant support for the largest number of tokens one can imagine, make it the perfect mobile wallet. Fast forward to 2024, Rainbow is still a fun way to experience cryptocurrencies. The app allows users to display offers on their NFTs, access airdrops, mint your own ENSENS (similar to DNS, but you register your name on Ethereum) and much more. Rainbow also recently introduced a points and user rating system, adding a touch of gamification to the experience.
Works on: iOS, Android, and browsers
Pros: Open source, great for keeping up with current “mint coins” (NFT sales, usually cheap or free), trading NFTs, registering your ENS, enjoying a gamified experience
Cons: Viewing apps and feed can get cumbersome, and there's no wallet storage
Multi-chain Staking: The spell
Talisman Multi-chain Wallet
Image courtesy of Talisman
Talisman was originally a native Polkadot wallet, offering the easiest DOT dollar staking experience (Polkadot's native token) on the market to date. Secure, reliable, and cross-chain, Talisman allows users to experience both Ethereum and Polkadot in a seamless way. If you are already a cryptocurrency enthusiast and are looking to start storing ETH, DOT, or other tokens, you will be a happy user of Talisman.
Works on: Browser
Pros: Great as a wallet app, multi-chain staking (DOT, $ETH, $ASTR ASTR), cross-chain wide support for Ethereum-2s layer and Polkadot parachains
Cons: Challenging NFT UX
The giant building an on-chain future: the Coinbase COIN Wallet
Since its public debut in early 2021, Coinbase has expanded its appeal to native Web3 users, especially with the launch of its second layer blockchain, Base. Since the launch of the layer 2 blockchain, more components of the Coinbase group have begun to attract more native web3 users. Coinbase Wallet recently announced App Evolution: a set of wallet solutions that make it easier for app developers to create onboarding experiences. Coinbase Wallet provides an easy-to-use, frictionless wallet with DeFi and NFT functionality.
Works on: iOS, Android, browsers
Pros: Multi-asset, great user experience, wide range of dApp integrations, very powerful with Coinbase's exchange/onramp
Cons: Relies heavily on Coinbase Global services, does not provide customer support
Cryptocurrency wallet technology is currently at its peak, and users can experiment and design their own journeys with much less friction than in years past. Not only do the above wallets offer a great user experience, but the development teams behind them also focus on supporting security best practices. Despite these wallets' focus on security, users must remain vigilant against phishing, social engineering, and other security threats. Always conduct thorough research, use strong security measures, and invest responsibly. Happy web3 exploring!
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