Crypto: The bear market is boosting sales of physical wallets! The bear market that we are going through and the purge that is raging among crypto players make at least a few people happy: companies that market so-called cold wallets. Ledger says it has more than quadrupled its sales over the past few months. And the French unicorn is not the only one to take advantage of the current context. Like others like SafePal or Trezor.
Loss of user confidence
Since the collapse of the Terra ecosystem that dragged a number of other players down with it, users seem to have lost confidence. Because of the symbolic fall of the stablecoin UST, was then grafted a cascade of bankruptcy.
From Three Arrows Capital to Digital Voyager, many other players have been directly impacted. Then it was the turn of platforms like Celsius or Hodlnaut to suspend user withdrawals on the grounds of “current market conditions”.
Other elements such as layoffs at behemoths like Coinbase have also aggravated user mistrust. On the Solana blockchain, the recent hack that allowed the hacker to steal more than $4.5 million in SOL and USDC obviously didn't help matters.
Today, this loss of confidence is condensed in the slogan “ Not your key, not your coin ”, which we find much more often mentioned on social networks. A slogan that encourages users to opt for a secure crypto wallet. And at this little game, cold wallets seem to be the ones that offer the most guarantees.
But the bear market we are going through is also pushing some investors to reconsider their long-term strategies. Because many had not expected to lose so much in such a short time.
A survey published by Civic Science also tended to show that more than half of investors had not closed their positions during this bear market. For all these users who are therefore waiting for the market to rise again, hardware wallets are becoming the solutions they are considering.
Sales of Ledger, Trezor or SafePal devices are exploding!
This general context of fear is obviously favorable to physical wallets. The French brand Ledger, which markets the Ledger Nano S and Ledger Nano X models, is experiencing a boom period.
At the last Ledger Op3n conference last June, the company announced that it had sold more than 5 million wallets. Since the bankruptcy of Celsius, the company says that sales of its wallets have increased by 350%!
But this wave of panic is also beneficial to other players in the sector such as Trezor and SafePal. Like Ledger, the two entities are delighted to experience very strong sales growth. SafePal representatives refer to “substantial growth in sales”.
A growth that they also attribute in large part to the current context prevailing in the crypto market. The entity is still betting on a more massive adoption of cryptocurrencies by players who would become disillusioned with the traditional financial system.
At Trezor, we also hold the same speech. But above all, we seek to highlight the behavior of users who are fearful of the idea of being able to lose access to their assets at any time.
According to Ledger's communication, this kind of episode was inevitable to make users aware of the importance of securing their digital assets.
"Although it was really disappointing and sad for many people that they lost, something like this had to happen. I think people now realize why they need to focus more on safety, and I think we've seen that reflected in sales."
These cold storage players “profit” from the imperfections of the crypto market. Shortly after the latest hack on the Solana blockchain, Ledger launched its promo code “MOVESL2LEDGER” which allowed you to buy a Nano S or a Nano X with a 10% discount. Unfortunately, the offer was only valid until August 7th.
READ MORE: Mistakes Not To Make In A Bear Market
A positive effect on the markets?
Storing digital assets on cold devices provides some insights. As a general rule, investors who use this type of tool are part of a perspective of asset conservation over the long term.
An increase in storage on cold wallets, therefore, contributes to lowering the selling pressure for the assets concerned. And this, therefore, has a positive effect on the price of an asset.
Nevertheless, the current context could also push those who trade more than they invest, to turn to physical wallets. Anyway, the current market context questions a lot of crypto investors.
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