Demand for Self-Custody on the Rise

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Rising Appetite for Self Custody

As a seasoned crypto investor with a decade of experience under my belt, I can’t help but notice the rising appetite for self-custody solutions like Unity Wallet. The recent surge in new users, coupled with the increasing awareness about the risks associated with centralized exchanges, is a testament to this trend.

In the midst of escalating geopolitical issues and an election year filled with unpredictability, Unity Wallet experienced a 115% rise in new users over the past twelve months, demonstrating a rising trend towards self-custody when it comes to managing cryptocurrencies. Self-managed wallets are gaining popularity due to their heightened security and the independence they offer within the realm of decentralized finance (DeFi), as an increasing number of users opt for self-reliance rather than relying on third parties who are frequently vulnerable to hacks.

In the past couple of weeks, the pattern observed in the market has become even clearer. From October 26th to November 2nd, crypto funds accumulated $2.2 billion, pushing the yearly total to an impressive $29.2 billion. This surge is due to increased investor interest leading up to the U.S. elections. Yet, while this influx of money has been taking place, the dangers inherent in centralized systems have become more evident. For instance, during September, crypto heists led to a staggering $120 million loss. These incidents underscore the weaknesses of centralized exchange platforms. As a result, there’s been a growing move towards self-custody solutions, seen as a safer option for managing digital assets.

James Toledano, as the Chief Operating Officer at Unity Wallet, stated, “During unpredictable and fluctuating periods, self-custody becomes significantly important, which aligns with our Q3 findings. Self-custody enables individuals to personally handle their private keys, thereby removing the need for intermediaries. This reduction in reliance on intermediaries lessens the risk linked with hacking of centralized exchanges and misuse.

Self-Custody User Demographics 

The distribution of users for Unity Wallet shows a clear bias towards male users, accounting for 75%, while female users make up just 25%. This is quite different from the typical crypto user demographic, where males represent 61% and females 39%. Moreover, it’s worth noting that most of Unity Wallet’s users are relatively young, with more than 81% being under the age of 44. In the past year, Unity Wallet has seen significant growth in various regions, such as the UAE, Africa, India, Colombia, and Turkey. Particularly noteworthy is its expansion in Latin America after implementing Spanish-language support.

This growth aligns with increasing crypto adoption in emerging economies, where demand for decentralized financial solutions continues to rise. For example, in Turkey, the implementation of the “Law on Amendments to the Capital Markets Law” in July established a regulatory framework for crypto asset providers, fueling market activity and driving a surge in local adoption. These regional developments highlight the broader appeal of Unity Wallet’s self-custody solution in dynamic, fast-evolving markets.

Seasoned Users Prominent Over Beginners 

Worldwide users of the Unity Wallet are displaying a bold, aggressive strategy towards cryptocurrency trading, placing significant funds in their self-managed wallets. On average, each user manages at least three main wallets (excluding sub-accounts), demonstrating active engagement across various digital currencies. The platform’s swap function is most frequently utilized, with an average transaction value of $5,000, suggesting a preference for diversified portfolios and high-value transactions. These trends suggest that the Unity Wallet is more popular among experienced crypto enthusiasts rather than beginners.

 

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2024-12-03 20:37