Multi-wallet usage up 16%, but AI may address crypto fragmentation gap

Fragmentation and complicated user experience remain two of the most significant obstacles to cryptocurrency’s mainstream adoption, according to a new industry report. Most users now use at least two wallets to manage their cryptocurrency investments.

The lack of interoperability across blockchains means users need to create multiple wallets to interact with different networks, with users having at least two wallets rising by 16% over the past year.

According to a research report published by onchain user experience platform Reown and crypto intelligence firm Nansen, 62% of crypto users reported using at least two wallets over the past three months, up from 45% in 2024.

More than 18% of respondents said security was their top concern related to wallet use, while 10.6% cited poor user experience as the biggest issue.

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“We’re at a pivotal moment in the evolution of wallet UX,” according to Eowyn Chen, the CEO at Trust Wallet. “The next wave of users, especially those coming from traditional Web2 or emerging markets, are bringing new expectations that challenge how we design tools and interfaces.”

Chen said wallets are shifting from asset storage tools to becoming the primary gateway to Web3 services, including digital identity, financial products, governance and gaming.

“That’s why we see wallets evolving into intelligent, personal companions — tools that not only hold your assets, but understand your behaviour, preferences, and needs,” she said.

Chen added that integrating artificial intelligence agents could help users navigate Web3 as easily as they shop online, while also reducing risks from scams such as phishing attacks. These scams typically involve tricking victims into sending assets to fake wallet addresses.

The need for more robust wallets became more apparent after an unknown attacker stole $330 million worth of Bitcoin (BTC) in a social engineering scam from an elderly US citizen, Cointelegraph reported on April 28.

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Out of the 1,000 surveyed participants, 51% of users preferred using a mobile wallet, down from 54.8% in 2024.

Only 10% of the respondents preferred using a hardware wallet, up from just 7% a year ago, signaling that hardware wallets are slowly gaining traction among more advanced crypto users. However, only 3% of new investors reported using a hardware wallet.

Social wallets, which are connected to a user’s email or other social account and require no seed phrase, have “transformed onboarding,” and are at the “forefront of UX innovation, quickly adopting technologies like passkey signers and gas abstraction,” according to Derek Rein, chief technical officer at Reown. He added:

However, users are still hesitant, with 39% of surveyed respondents saying that improved security and trust would help them adopt social wallets.

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