Despite the bear market impacting the digital asset industry this year, the adoption of cryptocurrency ATMs has continued to grow, driven by different factors.
Despite the bear market, over 4,000 crypto ATMs were installed in 2022!
Indeed, according to data from CoinATMRadar, the number of crypto ATMs installed worldwide reached 38,597 as of December 30, representing approximately 4,239 out of 34,358 machines registered in January 2022.
Number of installed crypto ATM table. Source: CoinATMRadar
The growth of crypto ATMs comes after an earlier Finbold report stated that the number of installed machines stopped for the first time in September. Similarly, despite the volatile market, another report stated that the crypto ATM market will likely grow by over 60% by 2030.
Also, the prevailing bear market has affected most businesses in the industry overall. In particular, most businesses, including ATM operators, had to slow down on their growth trajectory, waiting for market conditions to stabilize.
Drivers of crypto ATM growth
The growth in crypto ATM adoption can be attributed to several factors. First, the use of cryptocurrency for day-to-day transactions is becoming more common, and more businesses are accepting digital currencies as payment.
In addition, the growing awareness and understanding of cryptocurrency among the general public has led to a greater demand for convenient and accessible ways to buy and sell digital assets.
At the same time, the last crypto bull run of 2021 has also contributed to the increased use of ATMs in different jurisdictions. The use of ATMs, in particular, is crucial in promoting the adoption of digital assets by providing an alternative to traditional financial platforms.
However, as we enter 2023, if the bear market prevails, it will be interesting to watch how conditions affect the outlook for crypto ATMs.
Aside from the implication of a bear market, the crypto ATM space still faces the threat of regulatory scrutiny. For example, some jurisdictions see crypto ATMs as money laundering channels. Along this line, the Federal Bureau of Investigation (FBI) has issued a warning regarding crypto ATMs and QR codes used by hackers to deceive people.