Bear Market Effects: Installation of New Crypto ATMs Slows Down
The latest figures show that the first eleven months of 2022 have seen the installation of 6,100 new crypto automated teller machines (ATMs).
The temps have significantly slowed down due to the ongoing bear market. In comparison, over 20,300 crypto ATMs popped up in 2021 (when bitcoin and many altcoins charted their all-time high prices).
Change of Trends
The skyrocketing prices of most digital assets last year and the huge investor interest have prompted the planting of 20,300 crypto ATMs across the globe during 2021 (according to CoinATMRadar’s data).
Nonetheless, the recent economic turmoil, which started from the mass printing of fiat currency from central banks (due to COVID-19’s outbreak), and was intensified by military conflicts, record inflation, and others, has taken its toll on the industry. The global cryptocurrency market capitalization has shrunk to $850 billion (compared to around $3 trillion in November 2021), while bitcoin’s price is down by over 75% for the past year.
This setback has logically diminished the interest among investors and the installation of new crypto ATMs. 6,100 such devices have popped up during the first 11 months of 2022, which is approximately three times less than in 2021.
The total number of crypto ATMs across the globe is 38,863. The USA is the undisputed leader having over 34,000 of those machines located on its territory. Canada is second with 2,688, while Spain (262) and the first country to embrace bitcoin as legal tender – El Salvador (212) – are respectively third and fourth.
The study also revealed that the Canadian enterprise platform for Crypto ATM networks – BitAccess – has installed 12,000 machines (33% market share). General Bytes ranks second, while Genesis Coin and Bitstop follow shortly after.
Crypto ATMs Returned in Japan
Interestingly, one of the largest economies in Asia – Japan – had zero crypto ATMs between early 2018 and August 2022. The country’s authorities removed all such machines four years ago after the digital asset platform Coincheck became a victim of a major hack.
The local exchange Gaia, though, disclosed it will deploy 50 crypto ATMs in the following 12 months and increase the number to 130 in the next three years. The first devices popped up in Tokyo and Osaka and support four of the largest digital currencies by market cap: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
“There is a sense of security that BTC can be converted into cash immediately. Virtual currency tends to attract attention only for investment, but it also has potential as a settlement currency. I want to expand,” Gaia’s President – Motohiro Ogura – said on the move.
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