Cryptocurrency Wallet Market Faces 'Revenue Cliff'... $700 Million Disappears While Only Gambling and Gaming Grow

▲ 암호화폐 ©코인리더스

While cryptocurrency wallet service revenue plummeted by 60% in the first half of this year, with $700 million evaporating, the gambling and gaming sectors accounted for 66% of the total consumer market revenue, defending against the industry's deteriorating performance.

According to crypto media outlet CryptoPotato on November 8 (local time), market analysis firm 1kx stated that revenue from cryptocurrency wallets and user interface services in the first half of 2026 was approximately $400 million, a 60% decrease compared to the same period last year. Revenue, which amounted to approximately $1.1 billion during the same period last year, decreased by $700 million in one year, with reduced trading activity and cryptocurrency price volatility cited as key reasons.

The Decentralized Physical Infrastructure Network (DePIN) sector also could not escape sluggishness. Revenue in this sector decreased by approximately 10%, from $293 million in the first half of last year to $264 million this year. Due to the deteriorating performance of wallet and infrastructure-related services, the total revenue of the cryptocurrency consumer market recorded $5 billion, an 11% decrease compared to the same period last year. This is a decrease of approximately $600 million compared to the first half of last year.

In contrast, the gambling and gaming sectors showed clear growth. Revenue, which was approximately $3.1 billion in the first half of last year, increased by 8% to $3.3 billion this year, accounting for about 66% of the total consumer market revenue. 1kx analyzed that the robust performance of the gaming sector offset the sluggishness of wallet services, limiting the overall market's revenue decline. However, it also pointed out that the industry's reliance on specific, highly volatile business areas has increased.

Contrasting trends were observed in wallet activity across different blockchain networks. According to on-chain analytics firm Santiment, approximately 30,000 wallets with balances on the Bitcoin (BTC) network have decreased since mid-October, bringing the total number below 60 million. Santiment interpreted this as a sign of potential capitulation selling by small holders, evaluating that such movements could create a more favorable environment for Bitcoin price recovery than a rapid influx of new buying interest.

In contrast, Ethereum (ETH) saw the number of wallets with balances exceed 207 million in September, and the amount of staked Ethereum also surpassed 40 million. Santiment analyzed that network participation is expanding even amid relatively sluggish price movements. However, an increase in the number of wallets does not necessarily lead to an increase in revenue. As wallet services primarily generate revenue from token exchanges, transaction fees, and decentralized finance (DeFi)-linked services, 1kx's latest survey showed that reduced trading activity directly impacted wallet revenue, while the gaming sector was relatively less affected.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*