- Crypto ATM growth drops by 32%.
- Bear market and market sell-off caused the dropping numbers.
- 2021 was a good year for crypto ATMs.
The year 2022 witnessed a drop in the number of crypto ATMs installed globally. The numbers fell mostly due to the bear market and market sell-off that triggered a fall in the value of several crypto assets.
The number of crypto ATMs had a significant drop in Q2 2022 as the number of installations went down to 1,600 machines from 2,362. This drop was a considerable 32.26% decline.
The year 2022 started with 34,370 crypto ATMs. By the end of Q1, there were approximately 36,732 crypto ATMs. But during the closure of Q2, there were just 37,642 ATMs as per the data from Coin ATM Radar.
Interestingly, the market’s increasing value which later fell precipitously in 2022 led to an increase in the number of crypto ATM installations in 2021.
For instance, Bitcoin’s price fell by 70% from its all-time high of approximately $68,000 in November of last year. The asset is having difficulty keeping its price above $20,000 today.
Following the demise of Terra and the bear market, bitcoin lost almost 56% of its value in Q2. The current crypto market has proven to be extremely difficult for different crypto firms. Many firms have paused their activities, whereas many are on the verge of closing down.
In general, cryptocurrency ATMs help diverse assets become more widely used. However, it is important to keep in mind that ATM transactions do not affect overall liquidity; rather, they merely assist investors in purchasing cryptocurrencies against fiat cash.
The fate of crypto ATMs will be determined by the regulatory framework that will be laid down by the authorities of different countries. There have also been instances of criminals utilizing crypto ATMs for defrauding.