Decline in Crypto ATMs in 2023
In 2023, there was a significant decrease in the number of crypto ATMs, with over 5,700 units being discontinued. This marks the first time since their initial deployment in October 2013 that there has been a decline in these machines. According to data from Coin ATM Radar, the global count of crypto ATMs has dropped from its peak of 39,350 in December 2022 to around 33,620, representing a 14.5% decrease.
Fluctuating Trend in Deployment and Decommissioning
Data reveals a fluctuating trend in the deployment and decommissioning of crypto ATMs throughout the year. In January 2023, 1,523 ATMs were removed, followed by 210 in February and a significant reduction of 3,555 units in March. There was a brief resurgence with nearly 2,500 new installations in May and June. However, July saw the highest number of ATM removals, with 4,218 units being decommissioned.
Market Share Concentration
Within the global cryptocurrency ATM network, 10 operators control 67% of the market share. Bitcoin Depot leads with 6,000 ATMs, followed by Coinflip with nearly 4,000. Bitstop and Rockitcoin also hold significant positions. This concentration of services among a few key players presents challenges for new vendors trying to enter and sustain the crypto ATM market.
Future of Crypto ATMs
As the overall market gradually emerges from the crypto winter, it remains to be seen if crypto ATMs will experience steady growth in redeployment and installations this year. However, current trends suggest that general consumer interest in ATMs for virtual assets might decline.
Hot Take: The Decline of Crypto ATMs Signals Shifting Consumer Behavior
In 2023, the decline in crypto ATMs indicates a shift in consumer behavior and preferences. With over 5,700 units discontinued, it is clear that there is a decreasing demand for physical ATMs for virtual assets. This trend aligns with the overall maturation of the crypto market and the increasing adoption of digital platforms and exchanges for cryptocurrency transactions. While some key players still dominate the market, new vendors may find it challenging to enter and compete in this space. As we move forward, it will be interesting to see how the industry adapts and evolves to meet the changing needs of crypto users.
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