On August 26, 2025, MetaMask announced support for logging in to the Wallet using simpler methods such as "Google account" or "Apple account."

For a long time, the registration and log in of crypto wallets typically required 12 seed words, and for security reasons, these words could not be copied or screenshot and saved on the phone (they needed to be manually written down). This undoubtedly raised the threshold for the general public to use wallets. Therefore, this "small change" from MetaMask actually sends a clear signal: wallets are trying to lower the usage threshold of Web3 in a Web2 way.

Looking back at the development of cryptocurrency wallets, it is evident that this is not an isolated attempt. From purely cryptocurrency management and transfer tools, to dApp log in, and later the integration of decentralized identity and reputation. Cryptocurrency wallets have always been continuously expanding their application boundaries.

Cryptocurrency Wallet: Asset Entrance

From the very beginning, one of the core concepts of the cryptocurrency world has been personal sovereignty and disintermediation. Users no longer rely on intermediaries such as banks and platforms to safeguard their assets, but instead demand direct ownership and control. This concept also dictates the primary need within the cryptocurrency system: self-custody.

To achieve self-custody, the crypto world requires a reliable tool to manage assets and execute interactions (such as signing transfers, receiving assets, checking balances). Thus, crypto Wallets have emerged.

According to the CoinLaw report "Cryptocurrency Wallet Adoption Statistics 2025", the number of active cryptocurrency Wallets worldwide has exceeded 820 million, with hot Wallets accounting for 78%, and more than 31 million cryptocurrency Wallets used for daily payments. Meanwhile, the report predicts that by 2029, the cryptocurrency Wallet market will expand to $57.61 billion, with a compound annual growth rate of 31.9%, and the overall size will be four times larger than in 2024.

In the field of cryptocurrency wallets, the most representative ones are:

• MetaMask, the most widely used Wallet globally, has approximately 140 million users and over 30 million monthly active users (MAU).
• Ledger, a leading brand in hardware Wallets, has sold over 7 million units according to official data, covering approximately 20% of global crypto assets.

Whether it is a hot wallet or a cold wallet, a single-chain wallet or a multi-chain wallet, the development of cryptocurrency wallets essentially revolves around the construction of "asset containers" and "transfer tools". Therefore, at this stage, the construction of cryptocurrency wallets is almost entirely directed towards one goal, which is to ensure the secure custody and basic circulation of assets.

At the same time, the industry's focus has gradually shifted from the expansion of public chains to lowering the barriers to entry. On one hand, as MetaMask has done, the registration and log in process has become more "Web2-like", attempting to reduce the learning and security costs associated with seed phrases in a more familiar way; on the other hand, the transfer and payment processes are also seeking a more intuitive experience, with compliance for stablecoins, QR code payments, social media account transfers, and even integration with offline POS systems, all working to bridge the experience gap between "crypto assets" and "daily payments".

Undoubtedly, asset management and transfer payments are the most important and widely used areas of cryptocurrency Wallets. However, with the birth and rise of Ethereum, smart contracts, and especially dApps, cryptocurrency assets need to participate in these more complex interactions, invoking contracts, engaging in DeFi, governance voting... Cryptocurrency Wallets are no longer a static asset vault, but need to become the "gateway" for cryptocurrency assets and even individuals to participate in decentralized ecosystems.

Crypto Wallet: Application Entry

With the emergence of Ethereum and smart contracts, DeFi has become the most popular and frequently engaged application in the crypto industry. Subsequently, applications such as NFT, GameFi, SocialFi, and others have continuously emerged, and crypto Wallets have naturally expanded from being "asset containers" to "application entry points." Users are no longer just depositing and withdrawing assets, but are also engaging in contract operations, liquidity mining, NFT trading, and DAO governance. To meet these needs, crypto Wallets have begun to develop in two directions:

1. Log in Identity: From the initial address mapping to ENS domains and DID systems, the Wallet has become the "account system" for users to enter dApps. Currently, on almost all dApps, users can click "Connect Wallet" to log in using the most widely used wallets. At the same time, the interaction records conducted in the dApp and the assets obtained, such as NFT items, will also be linked to that wallet address.
2. Application Aggregation: In the early days, users wanting to use dApps had to find its standalone webpage and then connect through a browser extension Wallet. Currently, cryptocurrency Wallets themselves have begun to take on the functions of aggregation platforms, simplifying the process for users to interact with dApps. Users can open their Wallet and directly complete interactions such as Swap, Bridge, staking, and mining internally, without needing to navigate to external pages. At the same time, many cryptocurrency Wallets have also set up dApp marketplaces, allowing users to select from within their Wallet to access different applications like DeFi, NFT, and GameFi.

With the expansion of the Web3 application ecosystem, users are no longer satisfied with "a series of scattered entry points"; instead, they expect the wallet itself to become a comprehensive operation center. In other words, the wallet is not just about solving the problem of "can it connect", but rather about addressing "how to connect faster and smoother" and "providing more comprehensive functionality". As a result, aggregating dApps, built-in interactions, and even directly packaging DeFi and cross-chain functionalities are becoming the core selling points of the new generation of wallets. From a "connector" to a "distribution center", the role of the wallet is quietly transforming.

According to the official presentation by WalletConnect, the project has supported over 50 million independent active wallets, 350 million connections, and more than 70,000 application log ins. At the same time, a report by CoinLaw also shows that approximately 48% of crypto wallets worldwide have interacted with dApps at least once. The report by Global Growth Insights titled "Crypto Wallet Market Size, Share, Growth, and Industry Analysis, By Types (Hot Wallets, Cold Wallets) , Applications (Commercial, Individual) and Regional Insights and Forecast to 2033" points out that over 41% of new wallets are launched with DeFi integration and cross-chain compatibility.

These data indicate that the "application entry" is no longer a marginal feature, but a common choice in the industry. Going forward, the competition among Wallets will no longer be about "how many applications are aggregated", but rather who can make the aggregation experience smoother and more contextual, thereby truly becoming the super entry point of the Web3 world.

Crypto Wallet: Data Entry

If "asset entry" makes the crypto Wallet an essential tool for Web3, and "application entry" turns the crypto Wallet into the operational center for users to access Web3, then "data entry" is opening the next frontier for the crypto Wallet.

In Web3, almost all interactions must be completed through a Wallet, which also means that every on-chain action of the user will ultimately be deposited under the Wallet address. As a result, crypto Wallets naturally gather the most comprehensive and direct user data. Therefore, with the continuous rise of the narrative of "data assetization," Wallets may be seen as a natural data entry point—safely outputting available data signals to the applications and brands that need them.

Under this narrative, the boundaries of the cryptocurrency Wallet are once again expanded, becoming the front-end interface for generating and invoking data assets. The interactive records associated with on-chain addresses are just the starting point; more importantly, how the Wallet structures these behavioral signals, encapsulates them into verifiable proofs, and invokes them externally with user authorization. Meanwhile, the scope of data is no longer limited to on-chain: from consumption records, browsing habits to content preferences, a large amount of off-chain data can also be invoked in the Wallet and enter the verifiable and tradable circulation process in a structured manner.

Currently, apart from some built-in DID wallets that can integrate partial data, there are almost no wallets that can serve as data entry points. A reference example is the new DataFi project DataDanceChain (X@DataDanceChain), which has built the native wallet DataDance Wallet into an "engine for generating and distributing data proofs." It corresponds to the complete link of "generation" and "distribution" through a three-layer architecture:

1. Data Capture Layer. Responsible for interfacing with the user's on-chain interactions (such as assets, NFTs, transactions) and off-chain data (such as consumption records, social media data), inputting through secure APIs.
2. Proof Generation Layer. Locally calls multiple privacy computing methods (ZK, MPC, TEE, etc.) to transform raw data into structured signals, which are then encapsulated as "verifiable proofs." This layer ensures that the original data is never visible to the outside, only the results can be verified, thereby safeguarding user privacy by design.
3. Distribution Control Layer. Users set authorization rules (such as purpose, validity, scope of use) within the Wallet, and Proof is distributed to applications or brands according to these rules. What applications receive is the "result," not the "process."

However, it must be acknowledged that the narrative of "data entry" is still in its early stages. Currently, there are still only a few wallet products that truly connect the links of data generation, packaging, authorization, and assetization, while the majority of wallets remain in the role of "assets and applications." However, as the data assetization market expands, privacy computing technology matures, and users' awareness of data benefits improves, crypto wallets are very likely to become the core entry point for data circulation and the forefront of data value release in the future.

Conclusion

From "asset entry" to "application entry", and then to the future "data entry", the crypto Wallet is no longer just a private key container, but is gradually taking on more and more complex roles. Looking back at this evolution path, we will find that the focus of the crypto Wallet industry has always been on three things:

• User Experience: How to lower the threshold, from mnemonic phrases to one-click log in;
• Privacy Protection: How to ensure verifiable rather than expose, from key custody to local proof;
• Value Capture: How to complete a closed loop for assets, applications, and data within the Wallet, rather than losing them to the outside.

These questions will determine the competitive landscape of the future crypto Wallet ecosystem. In other words, the core advantages of the next generation of Wallets will not be based on "how many chains and applications they support", but rather on who can better cover these three points: providing the most familiar experience, offering the strictest privacy protection, and creating the clearest value loop.