Phantom Wallet Surpasses Coinbase in App Store as Memecoin Craze Fuels On-Chain Shift

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As a researcher who has been closely observing the crypto landscape for several years now, I have witnessed firsthand the dynamic shifts and evolutions within this rapidly growing industry. The rise of memecoins and the subsequent surge in popularity of decentralized wallets like Phantom is an intriguing development that underscores the adaptability and resilience of retail traders.

The excitement surrounding meme coins on TikTok has prompted inexperienced traders to delve into decentralized wallets such as Phantom, despite these platforms being less user-friendly than centralized exchanges like Coinbase. As I write this, Phantom ranks fifth among free apps in the U.S. App Store, surpassing Coinbase which currently sits in 25th place.

As a market analyst, I’ve observed that Brandon Millman, the mysterious CEO of Phantom, ascribes this transition to the swift advancement of on-chain actions, which conventional exchanges find challenging to emulate. In his own words, via an email, he stated, “Centralized exchanges are struggling to adapt at the pace required to accommodate all these emerging on-chain principles.

For quite some time, Coinbase’s ranking in app store charts has served as a gauge of retail interest during bullish market phases. Yet, amidst the surge in the cryptocurrency market—where Bitcoin is almost touching $100K and boasts a staggering $3.4 trillion market capitalization—Coinbase is no longer the preferred choice for novice traders. Instead, the appeal of memecoins with high risk and potentially huge returns is attracting users to decentralized platforms.

“Most memecoins, being newly created and highly unstable, don’t usually appear on major centralized exchanges because they are considered speculative. To trade these tokens, users typically need to use decentralized wallets such as Phantom, which allow direct interaction with blockchain networks.

This trend also questions the priority given to accessibility on platforms such as Coinbase. Although centralized exchanges provide an easier entrance into cryptocurrency, the surge in meme coins has demonstrated that retail investors are prepared to tackle a more complex learning process to pursue potential gains.

The surge in popularity of Phantom mirrors the current trend, where decentralized tools are becoming increasingly relevant among a wider group wanting to engage in the dynamic, unforeseeable realm of on-chain trading. Whether this indicates a lasting change or merely a fleeting meme coin craze is yet to be determined.

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2024-11-24 13:18