Crypto ATM Network Witnesses a Reduction of Over 5,700 Units Globally in 2023
TLDR:
- 2023 marks the first-ever decline in crypto ATMs, dropping from 39,350 to 33,620 units globally, signaling a significant shift in the industry’s trajectory.
- The year witnessed a rollercoaster of installation and decommissioning, with a peak in March’s removal of 3,555 ATMs and a brief resurgence in May and June with nearly 2,500 new installations.
- Ten operators control 67% of the global crypto ATM network, led by Bitcoin Depot with 6,000 ATMs, indicating a concentrated market with potential barriers for new players.
- The data suggests potential challenges for new vendors entering the market, raising questions about sustained growth and competition in the crypto ATM industry.
- As the broader crypto market emerges from the crypto winter, the fate of crypto ATMs remains uncertain, leaving open the question of whether these decentralized kiosks will experience a revival or continue to mirror the evolving crypto landscape.
As we bid farewell to 2023, the crypto ATM ecosystem reveals a tale of fluctuations and consolidation, marking a significant departure from its historical trajectory.
A deep dive into the data from Coin ATM Radar paints a vivid picture of the industry’s dynamics, showcasing both the rise and fall of these once-ubiquitous machines.
A Historical First: Decline in Numbers
2023 etches itself into the crypto history books as the inaugural year witnessing a decline in crypto ATMs.
The year commenced with 39,350 units globally but concluded with a notable reduction to approximately 33,620, reflecting a 14.5% contraction.
This dip signifies a paradigm shift since the inception of crypto ATMs in October 2013.
Peaks and Troughs: The Yearly Rollercoaster
The journey throughout the year unfolded in waves of deployment and decommissioning. January set the tone with 1,523 ATMs bidding farewell, followed by a comparatively modest removal of 210 units in February.
March, however, marked a pivotal moment with a substantial reduction of 3,555 ATMs.
The narrative took an interesting turn in May and June, witnessing the installation of nearly 2,500 new machines.
July, conversely, saw the highest number of removals, with 4,218 ATMs decommissioned.
Market Dynamics: Concentration and Competition
Market concentration is a defining characteristic, with 67% of the global crypto ATM network dominated by ten key operators. Bitcoin Depot stands tall at the forefront with 6,000 ATMs, closely trailed by Coinflip with nearly 4,000, and notable players like Bitstop and Rockitcoin.
This consolidation accentuates the challenges for newcomers, hinting at potential hurdles in breaking into and sustaining a market largely controlled by a select few.
Gazing into the Future: Trends and Speculations
As the broader crypto market gradually emerges from the extended crypto winter, the fate of crypto ATMs remains uncertain.
Will these decentralized kiosks witness a resurgence in deployment and installations? The trends, however, suggest a potential decline in general consumer interest in ATMs for virtual assets.
The coming months will unveil whether the crypto ATM industry can adapt and rekindle its former growth or if it will continue to mirror the evolving landscape of the broader crypto sphere.
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