Phantom, a popular crypto wallet within the Solana ecosystem, has experienced a remarkable surge in its user base, with monthly active users surpassing 3.2 million in January 2024. This represents a substantial increase of 220% compared to the previous year. The number of installs also soared to 941,000, marking a staggering 463.5% rise from the same period in the prior year.
Key Takeaway
Phantom, a crypto wallet deeply integrated with the Solana ecosystem, has witnessed a substantial increase in its user base, propelled by airdrops and the growing prominence of decentralized finance (DeFi) activities. The surge in monthly active users reflects the shifting dynamics of crypto onboarding, with crypto wallets becoming the primary entry point for individuals entering the crypto space.
The Impact of Airdrops
According to Brandon Millman, CEO and co-founder of Phantom, the Jito and Jupiter airdrops played a pivotal role in driving the ecosystem’s growth. These airdrops, initiated by Solana-focused decentralized finance (DeFi) projects, provided users with rewards as a token of appreciation for their engagement. The airdrops, combined with the recent surge in Solana memecoin activities, have contributed to the influx of both new and existing users.
Changing Entry Points to Crypto
Millman noted that the landscape of crypto onboarding has evolved, with crypto wallets emerging as the new entry point for individuals venturing into the crypto space. He emphasized that the traditional method of onboarding through centralized crypto exchanges is gradually being replaced by the increasing trend of downloading crypto wallets as the initial step into the world of crypto.
Phantom’s Role and Expansion
Besides serving as a platform for holding and trading cryptocurrencies, Phantom aims to provide a secure gateway to web3 experiences. The company has expanded its support beyond Solana to include Ethereum, Polygon, and Bitcoin, with a focus on attracting and catering to individuals new to crypto and wallets.
Emphasis on Growth Over Revenue
Millman highlighted that Phantom is currently prioritizing user growth over revenue generation, aiming to attract more developers to build within the ecosystem. The company’s revenue model primarily revolves around providing in-app convenience features for cryptocurrency swapping, supplemented by nominal fees. With strong financial backing from investors such as Paradigm, Andreessen Horowitz, Jump Capital, and Solana, Phantom is focused on expanding its multichain support and solidifying its position as a leading crypto wallet provider.
Future Outlook
Looking ahead, Millman envisions a future where crypto wallets play a pivotal role in facilitating a diverse range of activities beyond traditional trading and holding of crypto assets. He anticipates continued growth in crypto wallet adoption as the ecosystem evolves and introduces new features, ultimately providing users with a gateway to a more interconnected and expansive crypto landscape.
