Phantom, a crypto wallet largely utilized in the Solana ecosystem, has tripled its active users in the last year, CEO and co-founder Brandon Millman told Eltrys.
Millman claimed Phantom had 3.2 million monthly active users (MAUs) in January 2024, up 220% from 1 million a year earlier, and 941,000 installations, 463.5% higher than 167,000. He continued, “These numbers are essentially our peak” and excelled in 2021 and early 2022 crypto bull market use and measures.
“The Jito and Jupiter airdrops were a huge ecosystem turning point,” Millman added. Solana has achieved escape velocity and become a top ecosystem. The platform attracts world-class builders.”
Solana-focused decentralized finance (DeFi) Jito Network and decentralized aggregator Jupiter made airdrops in late 2023 and early 2024, giving project users tokens as a “thank you” for utilizing their services.
Rain falls.
Airdrops and Solana memecoin fever may have increased ecosystem users, both new and old.
Millman believes crypto wallets are the next entrance point to crypto due to DeFi activities. He said “increasingly people are downloading a crypto wallet” to get started with crypto, while before, users went via centralized crypto exchanges like Coinbase due to “word of mouth.”
Millman said wallets and on-chain apps are the “new thing people are trying to get access to when they want to use crypto.”.
Phantom also provides “safe access” to web3 experiences, Millman said, in addition to holding and trading cryptocurrencies. Phantom shared links on its website to send 1.1 million visitors to the Jupiter claim site during the airdrop to avoid scams, he said.
Over-revenue growth
Phantom began as a Solana-only crypto wallet in 2021 but now supports Ethereum, Polygon, and Bitcoin. The startup wants to become the leading destination for crypto and wallet beginners by boosting its user base.
We’re focusing on growth. Instead of focusing on money, we want to feed it back to user growth. Additional signups entice developers to build on the ecosystem, resulting in additional apps and users. Millman said it’s like a flywheel, and we want to expand rapidly.
Phantom earns money like other wallets by offering in-app cryptocurrency switching options for a modest charge. Millman said that Paradigm, Andreessen Horowitz, Jump Capital, and Solana support the firm, which has a “strong balance sheet,” so it doesn’t need to concentrate on sales.
We think wallets will be multichain, like crypto exchanges. Initially a Bitcoin-only exchange, Coinbase added Ethereum support, and so on, he noted. A world with one currency on exchange is unimaginable. Wallets will follow.”
Rising crypto wallet use suggests additional expansion in the field, but it’s too early to expect the majority to self-custody their crypto assets. On-chain applications were previously too costly or complex to use, but airdrops and the consequent user growth highlight the value of composability, Millman said.
Development is allowed on on-chain platforms like Solana, but crypto exchanges like Coinbase are closed. Millman warned that trading or staking assets on exchanges might prevent airdrops.
Crypto wallets are more appealing than exchanges since they allow trading and provide on-chain benefits. DeFi apps now provide airdrops for use, which can only be obtained by installing a wallet. He added wallets are an entrance point since user intent and on-chain app kinds have proliferated and varied.
Millman anticipates crypto wallet use to rise as providers and the ecosystem add features and explore new routes. Sharp edges and strange notions remain, for sure. Secret recovery phrases handle wallet keys. However, we will innovate in these areas this year and are thrilled to exhibit the next evolution.”
He anticipates crypto wallets will aid more than buying, holding, and selling bitcoin. “It’s a window into a richer interoperability world.”
