With no doubt, the crypto industry has witnessed remarkable growth in 2024, with over 562 million people worldwide owning various forms of digital currencies. This accounts for approximately 6.8% of the global population, according to crypto ownership data from Triple-A.
As Web3 adoption accelerates, crypto wallets are also evolving beyond simple storage solutions into multifunctional financial tools. The global crypto wallet market, valued at USD 8.42 billion in 2022 by Grand View Research, is projected to grow at a compound annual growth rate (CAGR) of 24.8% from 2023 to 2030.
The critical role of Web3 wallets in safeguarding digital assets further came into focus following the recent $1.5 billion hack of Bybit, exposing vulnerabilities in Web3 wallet infrastructure. Safe{Wallet}, an institutional multi-signature smart contract wallet provider, has recently acknowledged its role in one of the largest thefts the crypto world has ever seen.
As crypto wallets gain wider adoption, CoinGape speaks with Trust Wallet CEO Eowyn Chen in this exclusive opinion piece on the evolving role of crypto wallets and the need for an improved user experience. She also discusses essential security measures for Web3 wallets, particularly in light of Safe{Wallet}’s acknowledgment of its infrastructure’s role in the Bybit hack.
Crypto adoption doesn’t happen in a vacuum—it happens when people can seamlessly integrate crypto into their everyday lives. That’s why wallets are no longer just storage tools; they’ve got to evolve into personal companions that help users buy, store, and use crypto in a number of ways that feel intuitive and natural,” says CEO Eowyn Chen.
At Trust Wallet, we believe adoption starts with ease of usability and a real sense of security. If interacting with crypto is complicated or feels risky, most people won’t take that first step. A Web3 wallet should make self-custody effortless, giving users full control over their assets while ensuring a secure and frictionless experience.
Web3 Wallets’ Evolving Role beyond just as ‘Crypto Storage tools’
In their jouney of evolution since 2009, crypto wallets are becoming more user-friendly and intuitive to attract mainstream users. Though in the early days, wallets were used primarily to store and transfer Bitcoin and early altcoin, today with the rise of smart contract, they are acting as Web3 gateways for various digital services.
From the early days of Bitcoin Core and Paper wallets in 2009, we are witnessing the rise of Centralised Exchange hybrid wallets and In-app/in-device wallets such as Trust Wallet’s mobile based approach.
Major exchanges such as Binance, OKY, Kraken and Bybit have integrated self-custodial crypto wallets within their CEX applications. Further, following the Solana Saga Phone’s success, there is also an influx of hardware-based Blockchain products which feature in-built crypto wallets.
The days of wallets being just “crypto vaults” are over. As the industry evolves, wallets are becoming the gateway to everything on-chain —whether it’s swapping tokens, participating in DeFi, exploring NFTs, or managing digital identity or even the AI data economy to come soon. But with this expanded role comes responsibility.
But with this expanded role comes responsibility. A Web3 wallet must also be secure, reliable, and easy to use, ensuring that anyone—whether a first-time user or an experienced trader—can confidently engage with blockchain technology. As we adopt more users, the user profile and needs also become more diverse than before. As such, a useful wallet also needs to be personal – understanding the users’ needs and stages in their journey to better serve them.
Owing to the rising players in the Web3 wallet space, there is also an increasing competition among the CEXs, Web3 Fintech and Web2 messaging applications such as Telegram. Vying for acquiring a greater user base with increased crypto adoption, these players are continuously working on improving user experience.
I believe that user experience (UX) is the foundation of driving widespread adoption in the Web3 space. A great UX isn’t just about seamless functionality—it’s about ensuring users feel secure, confident, and empowered as they explore the decentralized world.
Are Crypto SuperApps the future of Crypto Wallets
As the crypto wallets leaders in the industry are working on user-interface by providing access to various decentralized applications (dApps) directly by the wallet, the role of crypto wallets is set for further expansion.
A 2024 Report by Binance on ‘The Future of Crypto Wallets’ in fact projected that the wallets can follow on the lines of Browsing Wars of Web2. They can soon transition from just financial tools to comprehensive tools for managing various digital services akin to browsers with greater access to third-party dApps.
In Web2, we have seen many such remarkable expansions and growth, viz., Uber, Grab, Musk’s X – to name a few.
More than ever, people want a seamless way to interact with Web3 without the technical complexity. The next generation of wallets will remove friction—users won’t have to worry about which blockchain they’re on, how gas fees work, or whether they need multiple platforms to swap tokens or stake assets. Everything will just work.
As wallets evolve, their role will go beyond transactions. They will help users manage their digital lives effortlessly, making Web3 more accessible, intuitive, and secure for everyone.
Will Crypto Wallets end up in replacing Exchanges
Recently, in an interaction, Binance CEO and founder, Changpeng ‘CZ’ Zhao, opined that wallets can replace exchanges for everyday Crypto use.
CZ stated, “Most people shouldn’t have to use an exchange,” indicating that wallets are better suited for routine crypto activities. He suggested that crypto exchanges should serve as liquidity pools for large traders, rather than platforms for everyday users. C
On the question of replacing exchanges, Trust Wallet CEO Eowyn Chen says, “CZ has an interesting point. A lot of what you can do with web3 platforms like Trust Wallet overlaps with what exchanges have traditionally been known for. Buying and selling crypto, for example, is something users can do directly within Trust Wallet through our trusted partners—without needing to go through a centralized exchange.
Many people also hold their crypto on exchanges, which is convenient but comes with risks, especially in light of recent security breaches and platform failures. This is what makes using a self-custody wallet so attractive—it gives users full ownership and control over their assets, rather than relying on a third party to safeguard them.
When CZ mentioned the point, he thinks Centralized exchanges should focus on serving trading scenarios. So far the performance, experiences, and fees on CEX are still better than DEXs. But still, during this cycle, we have observed a significant increase in DEX trading volumes, reaching well over $500 billion in January 2025, according to DefiLlama. So do DEXs impose a threat onto CEX? I think so. Can it fully replace CEX? I hope so, but we will see how the industry evolves.
Though the fact that centralized exchanges and self-custody wallets serve unique purposes, and both have a role to play in the broader crypto ecosystem cant be denied. CEXs users prefer using an exchange for having a third party control over their funds and assured security, while those who prefer latter prioritize self-control.
Bottleneck in Web3 Wallet Security Infra
The recent Bybit Hack and the subsequent acceptance of Safe Wallet about the role of its fault infrastructure in the stealth theft, exposes the major security bottlenecks yet to be resolved in the Web3 Wallet infrastructure.
On solutions, CEO Chen says, “to stay ahead, wallet providers must act proactively: conducting regular security audits not only within their own systems but also across third-party integrations to catch vulnerabilities early, and deploying real-time monitoring to spot anomalies like unusual transaction patterns. These aren’t new ideas—they’re proven practices from Web2 and traditional finance.
Looking forward, wallet security will mean smarter risk detection, better recovery options, and stronger authentication—think of it as technology that anticipates threats before they strike. But for us, it’s bigger than that. It’s about giving users the confidence and tools to thrive in Web3. That’s the future we’re building at Trust Wallet. We’re investing heavily in features like our built-in security scanner and real-time monitoring, while also prioritizing user education to help our community navigate risks with clarity.
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