2023 Popular Self-Custody Wallet Rankings Revealed! Is Your Wallet Secure?

The data platform Coingecko and the on-chain security platform CER have compiled the current most popular crypto wallet rankings, with MetaMask leading the market. However, as awareness of self-custody importance has increased, the security of each wallet has come under greater scrutiny, yet it seems that most brands have not passed through a complete verification and audit process.

Top Four Wallets Hold 2/3 Market Share

The report reveals that the top ten most widely used crypto wallets cover 81.2% of global crypto users based on installation numbers. Among them, the top four hold a combined 66.6% share.

MetaMask, launched in 2016, stands out as the leader among other brands, dominating the current market with 22.66 million downloads.

Rise of Self-Custody Awareness

The collapse of centralized exchange CEX FTX has spurred a growing awareness of self-custody. According to Coingecko's statistics, the percentage of users storing assets in hot wallets has grown to 80%, with 70% of respondents still using CEX. This implies that CEX's development of self-custody wallets or related services is crucial, as it will reach a large number of users and have a broad impact.

More Mobile Users Than Desktop Users

According to data from CER data, the number of mobile app installations for crypto wallets far surpasses the number of extensions and desktop applications on browsers like Chrome, Opera, and Edge, with a gap of 61.6 million and 19.55 million. In other words, most people prefer to use their crypto wallets via mobile devices rather than desktop computers.

Only 13.3% of Wallets Have Undergone Penetration Testing

However, not all wallets on the rankings have undergone comprehensive security testing, which is a cause for concern.

Previously, CER pointed out in a July report on crypto wallet security ratings that among the top 45 crypto wallet brands, only 6 have undergone penetration tests. Furthermore, only 3 wallets—MetaMask, ZenGo, and Trust Wallet—have been tested on their latest versions.

Penetration testing is a method where authorized security researchers conduct network attacks, device intrusions, or unauthorized use of computer systems to identify vulnerabilities, evaluate system security, and test the functionality of security mechanisms.

Without complete penetration testing, products may be vulnerable to attacks due to unknown vulnerabilities, resulting in severe financial and reputational losses post-launch.

The report also highlights the following points:

• Most wallet developers, due to cost considerations, do not undergo complete security testing but opt to invest in bug bounty programs for other security researchers to actively seek vulnerabilities.
• Open-source wallets are not entirely secure, but when wallet developers combine open source with bug bounty programs, they can effectively enhance wallet security.
• Hardware wallets do not inherently enhance security during use but significantly reduce the risk of losing funds in the event of a hacker attack.
• Security of wallet types: Web extension > Mobile app > Desktop application
• Well-known brands typically have more thorough security audits.
• Recommendations for choosing wallets: Check ratings, opt for more reputable brands, ensure complete audits and testing, and have regular updates and fixes.