Crypto Scene Update: Active wallet numbers drop in last 2022 quarter

The number of active crypto wallet users gives a broad picture of the ecosystem of blockchain and crypto users including investors and traders. Despite the recent surge in Bitcoin price, the number of active and unique wallet users in the last quarter of 2023 dropped 9.7% year on year compared to the fourth quarter in 2022. In a separate news, among all blockchains, the BNB chain of Binance had over 20% of all unique and active wallets (UAW).

The collapse of Silicon Valley Bank had a positive impact on the overall cryptocurrency sentiment, as it became another fallen brick of the conventional economy. But among the sufferers was USDC, a stable coin launched by Circle Financial, which had deposits worth over $3 billion. The stable coin pegged to the dollar dropped in value to 88 cents for three days, after which the US Fed intervention stabilized USDC.

The DeFi ecosystem, which was upbeat following the Arbitrum airdrop, also suffered an aftershock, but soon surged followed the Fed intervention.

The stablecoin market does not appear to be as strong as it might appear, a case in point being the collapse of Terra Luna. Circle’s deposits were not insured. Tether, another popular stable coin, has shared that its reserves are safer in bonds, metals, secured loans and other cryptos.

NFTs have continued to do well in terms of trading volumes. The Ethereum NFTs have a challenge from the bitcoin minted NFTs with the ordinal feature. The DappRadar report reveals over $4.5 billion in trading, with the previous high occurring in the second quarter of 2022.

Web3 gaming occupies a central place when it comes to active user wallets. Gamers hold over 45% of UAWs. There are nearly 8 lakh of active user wallets involved in gaming.

The most recent view on the nature of cryptocurrencies comes from the SEC chairman Gary Gensler. According to Gensler, except Bitcoin, other cryptos should be seen as securities. Stablecoins are more like money funds, since they are backed not by the pegged currency alone (like dollar), but also by bonds, metals and loans, as in the case of Tether.


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