As crypto wallets evolve from simple digital keychains to the backbone of the Web3 user experience, the latest ‘State of Wallets 2025’ report by Dune Analytics provides an expansive look into the future of this critical infrastructure. Among the standout findings? Nigeria now accounts for 12.7% of all MetaMask users worldwide, cementing its status as a leading force in global crypto adoption.
The Big Picture: Wallets Are Exploding
According to the report, over 1.6 billion wallets have been created across various chains—a growth driven heavily by airdrop incentives, gas subsidies, and embedded wallet tech. Notably:
- 80% of wallets ever created were minted after 2022
- Smart contract wallets (powered by ERC-4337) are now being created more frequently than EOAs (externally owned accounts) on Ethereum
- Solana leads in wallet activity and retention, with 54% of all daily active wallets in 2024
- Embedded wallets in apps like Farcaster and friend.tech are redefining onboarding
Nigeria Leads the Pack
Nigeria’s 12.7% share of MetaMask users makes it the top individual country in the report, beating out the U.S., India, and others. This isn’t just a footnote—it’s a reflection of broader shifts in how crypto is adopted and used in emerging markets.
Why Nigeria?
- Currency Instability: With inflation and FX volatility, Nigerians are seeking financial stability through crypto.
- Entrepreneurial Youth: A digitally native population is adopting wallets for everything from freelance earnings to DeFi and gaming.
- Exchange Crackdowns: Regulatory pressure on centralized exchanges is pushing users toward self-custodial solutions like MetaMask.
Implications for Africa
Nigeria’s dominance underscores the potential for Africa to be a global crypto growth engine, particularly in non-custodial wallet adoption. However, the absence of other African countries in the top 10 raises questions: Is usage being aggregated under “Other,” or is wallet penetration simply lower elsewhere?
The Opportunity: There’s a clear call for localized wallet infrastructure across Africa—fiat on-ramps, language support, and mobile-native design that meets users where they are.
Strategic Insights
1. Emerging Markets Are the Growth Frontier
Countries like Nigeria, India, Indonesia, and Vietnam—marked by economic uncertainty and limited traditional finance access—are seeing explosive wallet adoption.
2. Fragmentation = Opportunity
Nearly half of all wallet users are categorized as “Other,” revealing a fragmented but global user base. This offers wallet providers a chance to craft regional strategies and partnerships.
3. Africa Needs Wallet Infrastructure
From remittances to savings, wallets are how Africans are entering Web3. But more Africa-specific solutions are needed to unlock the next wave of adoption.
Ecosystem Trends
Solana
- Dominates active wallets in 2024
- Better post-airdrop retention than EVM chains
- Ecosystem built for mobile (Backpack, Phantom, Dialect)
Ethereum & L2s
- Hotbed of ERC-4337 wallet adoption
- Base and Optimism lead in AA wallet growth
- Polygon sees many wallets, but low retention
Bitcoin
- Large user base, but limited activity
- Ordinal wallet growth is nascent (UniSat, OKX)
Smart Wallets Are Here
ERC-4337 and Account Abstraction (AA) are now delivering real-world benefits:
- Gasless transactions
- Social recovery
- No seed phrases
- Programmable wallet permissions
Wallets like Safe, Biconomy, Alchemy, and Stacks are leading this new era.
Airdrops Work—But Only for So Long
Airdrops remain a key tactic for attracting users, but retention is still a pain point. Solana sees better stickiness, likely due to its app ecosystem. Future airdrops may rely on on-chain reputation or in-app engagement (e.g., Farcaster badges) rather than one-off incentives.
UX Is King: The Mobile & Embedded Era
The best wallets now offer:
- App-native onboarding
- Passkey/social login
- Invisible wallets (user doesn’t even know one is created)
This shift is helping crypto reach mainstream audiences who aren’t “crypto-native.”
Security & Compliance
Programmable wallets introduce new risks:
- Requires auditing, monitoring, and real-time threat detection
- Institutional wallets now integrating KYC/KYT tools for compliance
What the Future Holds
According to Dune, wallets are evolving into full-fledged Web3 operating systems:
- Invisible, embedded wallets
- Smart wallets for identity, messaging, commerce
- Wallets as reputation hubs
- Programmable DeFi and DAO automation
TL;DR for Builders and Investors
- Airdrops drive numbers, but UX drives retention
- Invest in mobile-first, embedded wallet solutions
- Smart contract wallets (ERC-4337) are the future
- Build with context: not all users want the same wallet
- App-native onboarding is the growth lever for 2025
