Crypto App Downloads Hit an Interesting Figure to Surprise Traders
Cryptocurrency trading and wallet app downloads fell 55% year-over-year (YoY) in the third quarter due to lackluster market trends, according to a recent Apptopia report.
The report examined market trends around fintech companies and concluded that “negative sentiment has gone too far.“Among the fintech segments most affected by the economic crisis, the cryptocurrency industry is leading the pack.
It was during the second quarter of the current year that the Terra stablecoin system collapsed, resulting in the crash of the cryptocurrency market.
Since then, the crypto market has been in a bearish trend for the rest of the year. Downloads of new apps, reflecting the number of new members, fell 55% year-on-year through the third quarter.
On the other hand, cash advance and buy it now, budget tracking and paid app downloads grew 69%, 22.6% and 22% respectively year-over-year during the third quarter.
The trend shows that many people rely on these apps because people are running out of money in a declining economy with rising inflation. “People are looking to buy items they currently don’t have the cash to buy,” the report said.
Strong contrast to last year’s trend
The current trend is the opposite of that observed last year. The first half of 2021 witnessed the biggest crypto bloom ever, which saw a large number of users flocking to it.
According to a Finbold reportcryptocurrency apps accounted for 51% of the top 50 asset management app downloads in the US in the first half of 2021. In 2019, the share of crypto apps was just 19%.
In fact, crypto app downloads overtook stock trading apps for the first time in 2021. Companies entering the crypto industry have also driven the growth of the industry. Another reason was the coronavirus-induced lockdown.
But as the crypto crash hit the market and many scams unfolded during the second quarter of 2022, a steady decline in crypto app downloads was also seen.
As the market remains sluggish, we have yet to see how many people would be willing to invest in cryptocurrency. As government regulations tighten across the globe, we also need to watch how people choose to engage with this asset segment in the future.