Uncovering the Crypto ATM Trend: Decline, Dynamics, and Determinants
The crypto ATM market experienced a dramatic shift in 2023, with an unexpected fall following ten years of steady growth. This fall, which is characterized by a significant drop in the global count of 14.56%, raises concerns about the trajectory of cryptocurrency ATMs going forward. This blog examines the complexities of the cryptocurrency ATM market, and looks into the causes of the downturn, the yearly trends that change, and the workings of major participants in the sector.
The Downtrend of Crypto ATM
The number of crypto ATMs worldwide fell from a peak of 39,350 in December 2022 to 33,620 at the end of 2023. The removal trend continued in the first four months of the year, when 1,523, 210, 3,555, and 340 machines were discontinued in January, February, March, and April, respectively. There was a brief uptick in installations in May and June (1,711 and 857, respectively), but July was the worst month for withdrawals with 4,218 machines being shut down.
Important Organizations in the Crypto ATM Market
- Bitcoin Depot: With 6,311 machines, Bitcoin Depot is the market leader in cryptocurrency ATMs and provides users with convenient access to Bitcoin transactions.
- Coinflip: With 3,880 devices, Coinflip is ranked second and has a significant influence on the development of the cryptocurrency ATM market.
- Athena Bitcoin, Bitstop, and Rockitcoin: Completing the list of the top five, these operators together manage a significant percentage of the remaining cryptocurrency ATMs.
Source: Coin ATM Radar
Distribution by Region
The United States is home to about 82.2% of all cryptocurrency ATMs, highlighting the country’s crucial position in the industry. Europe and Australia contribute 4.6% and 2.3%, respectively, and Canada comes in second with 8.4%.
However, Growth in those regions has certainly been hindered by the UK’s FCA crackdown on crypto ATMs and Europe’s 5AMLD regulations. Calls for more stringent KYC/AML regulations and heightened regulatory oversight from the GAO and FinCEN are prevalent in the United States.
Examining the Downtrend
It’s still unclear what the specific causes are for the noticeable drop in cryptocurrency ATMs. Although the sharp decline may indicate a decline in demand for these devices, it’s also possible that the unstable ‘crypto winter’ of 2022 had a negative effect on the companies that made them.
It is true that the number of ATM installations with a sole focus on cryptocurrency decreased significantly in 2023, but concentrating only on these numbers ignores the wider picture. A different picture is painted by the growing popularity of hybrid cash-to-crypto ATMs provided by businesses like Coinme and MoneyGram. 90% of Americans live within five miles of a cryptocurrency location thanks to Coinme’s network of 21,000 locations and its partnerships with MoneyGram and Coinstar. This quick growth outpaces the majority of conventional bank ATM networks.
In 2023, the crypto ATM market saw some difficult times and saw its first yearly decline in machines since its founding. The future of crypto ATMs remains a subject of cautious anticipation, as industry participants adjust to the changing circumstances. The future course of cryptocurrency ATMs will probably be shaped by the interaction of market dynamics, consumer preferences, and regulatory requirements. To successfully navigate these unexplored territories, industry participants must remain alert.