On August 26, 2025, MetaMask announced support for simpler login options like Google Accounts and Apple Accounts. Crypto wallet registration and login have traditionally required 12 seed words. For security reasons, these words cannot be copied or screenshotted and saved on mobile devices (manual transcription is required). This undoubtedly raises the barrier to entry for the general public. Therefore, this "minor change" by MetaMask actually sends a clear signal: wallets are attempting to lower the barrier to entry for Web3 users using Web2 methods. Looking back at the development of crypto wallets, it's clear that this wasn't an isolated effort. From simple cryptocurrency management and transfer tools to dApp logins, and later integrating decentralized identity and reputation, crypto wallets are constantly expanding their application boundaries. From the outset, one of the core tenets of the crypto world has been individual sovereignty and disintermediation. Users no longer rely on intermediaries like banks and platforms to custody their assets; instead, they demand direct ownership and control. This philosophy also dictates the primary requirement of the crypto system: self-custody. To achieve self-custody, the crypto world requires a reliable tool for managing assets and performing interactions (such as signing transfers, receiving assets, and checking balances). Thus, crypto wallets emerged. According to CoinLaw's report, "Cryptocurrency Wallet Adoption Statistics 2025," there are currently over 820 million active cryptocurrency wallets worldwide, with hot wallets accounting for 78%, and over 31 million cryptocurrency wallets used for daily payments. The report also predicts that by 2029, the cryptocurrency wallet market will expand to US$57.61 billion, a compound annual growth rate of 31.9%, and its overall size will quadruple compared to 2024. Among the most prominent crypto wallet players, the following are: MetaMask, the world's most widely used wallet, with approximately 140 million users and over 30 million monthly active users (MAUs). Ledger, a leading hardware wallet brand, has sold over 7 million units, covering approximately 20% of all crypto assets worldwide, according to official data. Whether hot or cold wallets, single-chain or multi-chain, the development of crypto wallets fundamentally revolves around the construction of "asset containers" and "transfer tools." Therefore, at this stage, the construction of crypto wallets is almost entirely focused on one goal: ensuring the secure custody and basic circulation of assets. Meanwhile, the industry's focus has gradually shifted from expanding public chains to lowering the barrier to entry. On the one hand, as MetaMask has done, "Web2-ization" of registration and login attempts to reduce the learning and security costs associated with seed words through more familiar methods. On the other hand, the transfer and payment process is also seeking a more intuitive experience. Stablecoin compliance, QR code payment and collection, social media account transfers, and even integration with offline POS systems are all narrowing the experience gap between "crypto assets" and "daily payments." It's undeniable that asset management and transfer payments are the most important and widely used areas for crypto wallets. However, with the emergence and rise of Ethereum, smart contracts, and especially dApps, crypto assets need to participate in these more complex interactions, such as calling contracts, participating in DeFi, and voting on governance... Crypto wallets are no longer just static asset safes; they need to become a "gateway" for crypto assets and even individuals to participate in the decentralized ecosystem. Crypto Wallets: Application Portal With the emergence of Ethereum and smart contracts, DeFi has become the most popular and frequently participated application in the crypto industry. Subsequently, applications such as NFTs, GameFi, and SocialFi have continued to emerge, and crypto wallets have expanded from "asset containers" to "application portals." Users no longer simply deposit and withdraw assets; they now also need to operate contracts, engage in liquidity mining, trade NFTs, and perform DAO governance. To meet these needs, crypto wallets have begun to develop in two directions: Login identity: From initial address mapping to ENS domain names and the DID system, wallets have become the "account system" for users to access dApps. Currently, on nearly all dApps, users can click "Connect Wallet" to log in through the most widely used wallet. At the same time, interactions within dApps and assets acquired, such as NFT items, are also bound to the wallet address. Application Aggregation: In the early days, users who wanted to access a dApp needed to first find its independent website and then connect through a browser plug-in wallet. Currently, crypto wallets themselves have begun to serve as aggregation platforms, streamlining the dApp experience. Users can open their wallets and perform swaps, bridges, stake, and farm directly within them, eliminating the need to navigate to external pages. Many crypto wallets also offer dApp marketplaces, allowing users to access different applications, such as DeFi, NFTs, and GameFi, simply by selecting them from within their wallets. With the expansion of the Web3 application ecosystem, users are no longer satisfied with "distributed entry points" but instead expect their wallets to become a comprehensive operational hub. In other words, wallets need to address not just the question of "connectivity," but also "how to connect faster and more smoothly" and "provide a fuller range of features." Consequently, dApp aggregation, built-in interactions, and even direct integration of DeFi and cross-chain functionality are becoming the core selling points of the new generation of wallets. From "connector" to "distribution center," the role of wallets is quietly evolving. According to WalletConnect's official presentation, the project already supports over 50 million independent active wallets, 350 million links, and over 70,000 app logins. Meanwhile, a CoinLaw report also shows that approximately 48% of crypto wallets worldwide have interacted with a dApp at least once. Global Growth Insights' report, "Crypto Wallet Market Size, Share, Growth, and Industry Analysis, By Types (Hot Wallets, Cold Wallets), Applications (Commercial, Individual) and Regional Insights and Forecast to 2033," notes that over 41% of new wallets already have DeFi integration and cross-chain compatibility when they launch.

These data show that "application portal" is no longer a marginal function, but a common choice of the industry. In the future, the competition between wallets will no longer be about "how many applications are aggregated", but who can make the aggregation experience smoother and more scenario-oriented, thereby truly becoming a super portal to the Web3 world.

Crypto Wallet: Data Portal

If the "asset portal" makes the crypto wallet an essential tool for Web3, and the "application portal" makes the crypto wallet the operation center for users to enter Web3, then the "data portal" is opening up the next frontier of the crypto wallet. In Web3, almost all interactions must be completed through a wallet, which means that every on-chain behavior of a user will eventually be recorded under a wallet address. Therefore, crypto wallets naturally gather the most comprehensive and direct user data. Therefore, as the narrative of "data assetization" continues to heat up, wallets may be seen as a natural data entry point - securely outputting available data signals to applications and brands that need them. Under this narrative, the boundaries of crypto wallets are further expanded, becoming a front-end interface for generating and calling data assets. The interaction records associated with the on-chain address are only the starting point. What is more critical is how the wallet structures and encapsulates these behavioral signals into verifiable proofs and calls them externally with user authorization. At the same time, the scope of data is no longer limited to on-chain storage: from consumption records and browsing habits to content preferences, a vast amount of off-chain data can also be retrieved in wallets and put into a structured, verifiable, and tradable circulation process. Currently, while some wallets with built-in DIDs can integrate some data, few wallets can serve as data entry points. For example, the new DataFi project, DataDanceChain (X@DataDanceChain), builds its native wallet, the DataDance Wallet, into an "engine for generating and distributing data proofs." This is achieved through a three-layer architecture, corresponding to the complete chain of "generation" and "distribution": Data Capture Layer. Responsible for connecting users' on-chain interactions (such as assets, NFTs, and transactions) with off-chain data (such as consumption records and social media data), using a secure interface for unified input. Proof Generation Layer. Locally invokes multiple privacy-focused computations (ZK, MPC, TEE, etc.) to convert raw data into structured signals, which are then encapsulated as "verifiable proofs." This layer ensures that external parties never see the raw data, only the results, safeguarding user privacy by design. Distribution Control Layer. Users set authorization rules in their wallets (such as purpose, time limit, and call scope), and Proof is distributed to applications or brands according to these rules. Applications obtain "results" rather than "processes."

However, it must be admitted that the narrative of "data entry" is still in its early stages. Currently, there are still only a few wallet products that truly connect the links of data generation, packaging, authorization, and assetization. Most wallets still remain in the role of "assets and applications." However, with the expansion of the data assetization market, the maturity of privacy computing technology, and the improvement of users' awareness of data benefits, encrypted wallets are very likely to become the core entry point for data circulation and the forefront of data value release in the future.

Conclusion

From "asset portal" to "application portal" and then to the future "data portal", the crypto wallet is no longer just a private key container, but is gradually taking on more and more complex roles. Looking back on this evolutionary path, we will find that the focus of the crypto wallet industry has always been on three things:

• User experience: How to lower the threshold, from mnemonics to one-click login;

• Privacy protection: How to ensure verifiability rather than exposure, from key custody to local proof;

• Value Capture: How to close the loop between assets, applications, and data within the wallet, rather than leaking them to the outside.

These issues will determine the future competitive landscape of the crypto wallet ecosystem. In other words, the core advantage of the next generation of wallets will not lie in "how many chains and applications they support," but rather in who can best cover these three points: providing the most familiar experience, the strictest privacy protection, and creating the clearest value chain.