Mass Adoption Is Coming: Leading Web3 Wallets
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Before diving into the review of the best Web3 wallets, we must understand their special place and importance in the future development of the crypto market and its mass adoption. Web3 wallets allow people to store and use a wide range of digital assets, such as cryptocurrencies and non-fungible tokens (NFTs), with personal control and access to their wallet and assets. In the future, we will most likely view them as new generation neobanks.
A distinctive feature of Web3 wallets from centralized wallets is the ability to connect to a wide range of decentralized applications (dApps). Once a person connects their wallet to these services, they can use the assets stored in their wallet to participate in the Web3 economy. For example, one can connect to landing protocols like AAVE and MakerDao and get profit using crypto assets stored in their wallet. Or, they can provide liquidity to farming pools on Uniswap in ETH | USDT or on StonFi in TON pair | USDT and also earn a percentage.
Unlike with centralized wallets, DeFi (decentralized finance) users do not need to confirm their identity or provide any clarifying information - all they need is a phone to write down the secret recovery phrase (seed phrase). The anonymity of WEB3 wallets attracts many users and means that a person’s identity will never be revealed. This is how we are quickly arriving at the mass adoption of cryptocurrencies around the world.
According to a report by Grand View Research, the global crypto wallet market size was estimated at $10.26 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 24.8% from 2023 to 2030 that will finally reach $48.27 billion. One of the fundamental growth drivers for the market is the widespread adoption of cryptocurrencies as a legitimate asset class. The growth of new users of crypto wallets (especially WEB3 wallets) is moving at a very fast pace. Have a look at the numbers.
The leading positions in increasing the user base in 2024 are taken by TrustWallet, Coinbase and Metamask with an increase of 31 mln, 9.4 mln and 5.4 mln users, respectively. So let's look at the most popular and best WEB3 wallets at the moment, compare their advantages and disadvantages, determine what place they hold in the market and why they remain among the leaders for such a long time.
Metamask
The non-custodial wallet MetaMask from ConsenSys is the most popular on the market, according to CoinGecko. The number of downloads of the crypto wallet at the end of 2023 was more than 22 million, and it currently has a huge user base of over 30 million and a robust feature set with a monthly active user count of around 30 million.
MetaMask supports cryptocurrencies based on Ethereum, BNB Chain, Polygon and a number of other networks of Layer-2 solutions such as Optimism, Arbitrum One, Linea, Manta. The app allows you to interact with more than 17,000 decentralized applications.
Metamask allows you to gain full control over your assets, but at the same time it is an online wallet and any malicious agent can gain access to your private keys by compromising access to the system in which you access Metamask.
The wallet is presented as a mobile application on iOS, Android, and is also implemented as an extension for Google Chrome, Firefox, Brave and Microsoft Edge browsers.
Metamask allows you to trade inside your wallet. However, it is worth noting that exchanging inside a wallet is more expensive than trading on a decentralized exchange, including through SimpleSwap.
Metamask Advantages
Let's highlight the main advantages of Metamask:
Constant updates of functionality and integration. For example, in May 2022, wallet developers announced integration with the Apple Pay mobile payment system. Since 2023, MetaMask has made it possible to carry out transactions with Ethereum via PayPal in the United States. Currently, integrations with other popular payment services are being prepared.
Integrating the Snaps feature expands the use of other blockchains that are not compatible with EVM. For example, the wallet is available for use on the Cosmos and Solana networks.
Thanks to the built-in DeFi tool MetaMask Swaps, one can exchange digital assets without switching to other platforms.
Using MetaMask, users can connect to staking protocols and stake Ethereum. They can block ETH in a smart contract through two LSD providers - Lido Finance and Rocket Pool.
MetaMask does not hold control of or collect personal data of its users. However, despite its good reputation, approximately 7,000 community members fell victim to the exploit between August 2021 and February 2023.
Metamask Disadvantages
With all the advantages and conveniences, Metamask has its disadvantages:
It works mainly on the Ethereum blockchain and Layer-2 solutions, not a completely universal wallet.
Due to the popularity of the wallet, cases of fraudulent activities and attacks on users from exploits (malware) in order to steal funds have become more frequent.
We recommend that you do not confirm suspicious transactions or connect to suspicious sites or protocols.
There were cases of Metamask being blocked in some countries, for example in Venezuela a year earlier, which indicates some kind of centralization on the part of the company.
No native wallet token (but it is in the plans).
An interesting fact is that ConsenSys (the parent company of Metamask) closed a $450 million round back in 2022 and attracted SoftBank as investors. And since last year, Web3 wallet has advertised the launch of its own Mask token and is planning an IPO, which will accelerate the popularity of Web3 wallets in general. But there are still delays in implementation.
Trust Wallet
Also in the crypto community, the non-custodial multi-wallet Trust Wallet, which has support for the Binance exchange and several unique functions, enjoys a special degree of trust. Trust Wallet is the first Web3 wallet to switch to a simple login method, leaving behind the need to interact with a seed phrase. And thanks to the release of the Swift Wallet functionality, we get an almost No-Gas wallet where you can pay the commission with any tokens.
At the moment, the number of downloads of the wallet application is more than 130 mln and is growing rapidly every day. Trust Wallet is universal and supports tokens on over 100 blockchains. In the latest news, during this quarter the team is to introduce several major infrastructure options for the token, including staking.
After Trust Wallet launched its smart wallet (Swift Wallet), it took a huge step forward to lead the market towards mass adoption.
TrustWallet Disadvantages
The main advantages and features right now from this Web3 wallet:
The ability to activate a Web3 wallet in 10 seconds. We get a quick entry for users to the crypto market. Setup and login using password-protected biometrics.
Exchange tokens in one touch, and gas fees can be paid with any of more than 200 tokens. Lower gas fees when paying with TWT token (which can be purchased on SimpleSwap)
Rapid connection of new blockchains to the wallet - the Ton network and its tokens were recently added.
The ability to connect your Ledger Nano S cold wallet to manage assets online and offline through a browser extension.
TrustWallet Disadvantages
One of the disadvantages is the fact that a large number of TWT tokens are concentrated in one hand (the team), but this will not in any way affect the improvement of the functionality of the wallet in the future and its development.
Experts also warn about the potential for private keys to be hacked. According to 1Inch analysts, the threat persists due to the use of a pseudo-random number generator.
The Trust Wallet app works on iOS and Android, and extensions are provided for using the wallet in the browser (Google Chrome, Brave, Opera, Edge).
We would like to note that Trust Wallet with its know-how is already ahead of its competitors in terms of functionality and, due to this, the dynamics of the growth of new users. Let’s also not forget that it has strong support from Binance, and therefore more resources available at any time. At this rate, we could see a revaluation of the Web3 wallet market this year and greater usage.
CoinBase Wallet
The non-custodial crypto wallet Coinbase Wallet has been consistently included in the TOP3 Web3 wallets for the past few years and is especially popular in the USA. The fact that the company has already entered an IPO and is traded on the stock exchange indicates a very serious player in this sector. According to CoinGecko, in 2023 the number of app installations exceeded 11 million.
Despite the fact that the Coinbase exchange is behind the wallet, the product acts as a separate unit in the ecosystem. In order to use it, one does not need to create or confirm an account on the trading platform. In March, Coinbase announced the launch of two revolutionary wallet solutions with big plans to integrate its Smart (AA) solution. The smart wallet and built-in wallet features address common user concerns related to creating and managing a crypto wallet.
It's worth mentioning Coinbase's built-in wallet feature is based on an innovative wallet-as-a-service (WaaS) concept, allowing companies to tailor blockchain wallets to their customers' specific needs (such as social media login processes).
Coinbase Wallet Advantages
Main advantages and features of the Coinbase wallet:
The private key is held by the owner of the wallet. However, if needed, users can link their account on the exchange to the wallet and use the functions of the exchange in synergy.
Sponsored Gas. Users do not need to pay gas to fund their wallet for the first few transactions.
Access keys (Passkey). Users can use their device security keys for signing transactions.
Representatives of Coinbase Wallet claim that the wallet supports hundreds of thousands of coins of various standards. In addition, the product works with NFTs based on Ethereum and Polygon.
Unlike competitors like MetaMask, Coinbase Wallet is not open source. This means that community members cannot influence product improvements or find vulnerabilities.
Coinbase Wallet users can deposit assets into an Ethereum smart contract to earn passive income. You can stake any amount of tokens.
Coinbase Wallet Disadvantages
It is hard to note many shortcomings of CoinBase Wallet, except for the localization of the entire Coinbase ecosystem (mainly for citizens of the USA and Europe). The wallet is still in the top-3 in terms of user influx and is trying to keep up with its competitors.
Coinbase Wallet is available for download on iOS, Android, and as an extension for Google Chrome.
We have reviewed the leading Web3 wallets that set the trend in their niche, but we believe it is necessary to mention very popular Web3 wallets for their blockchains - such as Phantom Wallet, used mainly for the Solana blockchain, which reached the TOP in terms of trading volumes in the DEFI sector, overtaking Ethereum, and also Tonkeeper of the growing TON blockchain with a record locked TVL of $760mln.
Crypto wallets of our days are what underlie any interaction with web3. They allow crypto asset holders to securely interact with their digital assets (accept, send, exchange and participate in the DEFI ecosystem). At the same time, they have greater user potential than storing assets on an exchange, thanks to a simpler interface and the growing desire of users to be their “own bank.” MetaMask, TrustWallet, Coinbase Wallet have set the trend for 2025 for the new acceptance of cryptocurrencies everywhere and soon we might be able to see a new reality, a new financial system!
Stay tuned and use SimpleSwap |||
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.
