A new report has revealed that 62% of crypto users now manage two or more wallets, highlighting deep fragmentation in the on-chain user experience.
The report, by Reown and blockchain analytics firm Nansen, based on a YouGov survey and on-chain data analysis, paints a picture of a growing yet splintered ecosystem where complexity continues to outpace usability.
The survey sampled over 1,000 active crypto users across the U.S. and UK.
Findings indicate that users rely on multiple wallets due to interoperability gaps, security trade-offs, and limited feature consolidation.
Despite rising wallet adoption, 58% of respondents said they don't understand how smart wallets work, signaling a significant UX and education gap in the space.
The rise of mobile wallets continues, but hardware wallets and exchange-based custody solutions like Binance are gaining traction among experienced users.
This shift reflects diverging user priorities between convenience and security, neither of which are consistently addressed in a single wallet solution.
Also Read: Inside Donald Trump’s Plan To Become The ‘Bitcoin Superpower’
Bitcoin remains the most widely held token (64%), and stablecoin usage nearly doubled to 37%, yet only 12% of users cited payments as their primary use case.
The report also notes rising activity on specialized chains like Solana (CRYPTO: SOL) and Base, though Layer-2 adoption remains relatively low despite growing interest in cross-chain interoperability.
"From wallet complexity to misunderstood smart accounts, we see that the growth in crypto usage isn't being matched by simplicity," said Jess Houlgrave, CEO of Reown.
Security perceptions have improved with 69% of users report feeling safe using crypto, but confusion remains around key tools and technologies like chain abstraction and smart contract security.
Nansen CEO Alex Svanevik added, "This data shows how fragmented behavior across blockchains reveals the need for more coordinated UX improvements."
Read Next:
- Eric Trump Advocates For Crypto, Says Banks Need To Evolve Or Face Irrelevance
Image: Shutterstock
