AI May Be the Key to Solving Crypto Wallet Chaos, Says Industry Report
62% of Users Now Operate Multiple Wallets as Fragmentation and Security Remain Top Concerns
In a year marked by rapid evolution in crypto infrastructure, wallet fragmentation is proving to be a persistent barrier to mainstream adoption. A new industry study reveals that multi-wallet usage has surged by 16%, with 62% of users now relying on at least two wallets to manage their digital assets.
The findings come from a joint report by on-chain UX platform Reown and crypto intelligence firm Nansen, which surveyed 1,000 crypto users. The report paints a picture of an industry still plagued by interoperability issues and a steep learning curve for new users.
Users say they’re juggling wallets to interact across different blockchain ecosystems, but security and user experience remain major sticking points. While 18% cited security as their top concern, 10.6% pointed to poor design and complexity as obstacles preventing smoother adoption.
AI-Powered Wallets Could Lead the Next UX Revolution
As frustration with wallet fragmentation grows, industry leaders are placing their bets on artificial intelligence to revolutionize the crypto wallet experience.
Eowyn Chen, CEO of Trust Wallet, believes the wallet is no longer just a vault for digital assets. “It’s becoming the core interface to Web3 — your identity, your bank, your governance tool, your game console,” she said.
Chen argued that AI agents could personalize user experience, help users navigate decentralized applications more intuitively, and protect against phishing attacks — one of the most costly and common scams in crypto. This comes after a recent $330 million Bitcoin theft involving an elderly victim in the U.S. highlighted vulnerabilities in wallet security.
Mobile Wallets Still Dominate, But Hardware Wallet Use Is Rising
Mobile wallets continue to lead, with 51% of users preferring them, down slightly from 54.8% in 2024. At the same time, hardware wallets are gaining traction, growing from 7% to 10% of user preference year over year. However, their adoption among newcomers remains limited — only 3% of new investors are using hardware solutions.
Social wallets, which eliminate seed phrases and connect to emails or social accounts, are also growing in relevance. “They’re leading UX innovation,” said Derek Rein, CTO of Reown. These wallets leverage passkey signers and gas abstraction to remove friction, although 39% of users say they still need stronger security guarantees before switching.
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