A new report from Reown and Nansen paints a picture of challenges facing cryptocurrency users, highlighting fragmentation in wallet experiences and security concerns as major hurdles to wider adoption. The research reveals that over 62% of crypto investors now use two or more wallets, driven by the lack of interoperability across different blockchain networks. Users face complex user interfaces and security anxieties, with 18% citing it as their top concern. Eowyn Chen, CEO of Trust Wallet, emphasizes how wallets are evolving from storage tools to gateways for Web3 services like digital identity, financial products, governance, and gaming. She points out that wallets will increasingly act as intelligent companions, understanding user behavior, preferences, and needs. Artificial intelligence could be key in enhancing user navigation within these complex environments, potentially mitigating the risks of scams such as phishing attacks. The report also sheds light on wallet trends: mobile wallets remain popular (51%) while hardware wallets are gaining traction (10%), though adoption remains low for new investors. Social wallets, connecting to email or social accounts without a seed phrase, are innovating onboarding processes and UX by integrating technologies like passkeys and gas abstraction. Derek Rein, CTO of Reown, stresses the importance of user-friendly design, ensuring transactions don’t require understanding complex concepts like gas tokens or blockchain switching. Despite these advances, only 3% of new investors reported using hardware wallets, suggesting a continued need for solutions to drive adoption.