The Evolution of Encryption Wallets: From Independent Products to Integrated Services

Encryption wallets, as a product concept, are rapidly transforming from cutting-edge technology to an essential product line for large enterprises. This shift is similar to enterprise collaboration tools, which must continue development even without profitability. In the Web3 space, encryption wallets have become infrastructure services, charging based on usage like a SaaS model.

The rise of stablecoins has sparked a new wave of transformation. Traditional wallet providers are facing challenges, while fintech giants are seeing new opportunities. They are not only focused on cryptocurrencies but also on the integration of stablecoins. This trend reflects the convergence of wallets, payment APIs, and stablecoins, aiming to provide businesses with a more comprehensive encryption payment solution.

Encryption exchanges ( CEX ) also realize the importance of Wallets and have launched their own Wallet products. Although these products may not directly generate profits or attract traffic, they lay the groundwork for future on-chain financial services. Some exchanges have successfully achieved the synergy between Wallets and the main site through innovative point systems and liquidity strategies.

At the same time, the rise of decentralized perpetual contract trading ( Perp DEX ) further blurs the lines between wallets and trading tools. This trend reflects the market's demand for more decentralized and diversified financial instruments.

From a historical perspective, encryption wallets once led the industry's development alongside Bitcoin mining hardware. However, with the rise of centralized exchanges, the role of wallets has gradually become marginalized. Now, apart from the rigid demand for wallets from Bitcoin holders, it has become difficult for wallets to survive as independent products.

This transformation marks the quiet end of an era in the encryption industry, while also signaling that a new form of financial service is taking shape. In the future, wallet functions may further integrate into a broader financial ecosystem, becoming part of larger-scale services.