More than 4,000 crypto ATMs installed in 2022 despite bear market

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Despite the bear market affecting the digital asset industry this year, the adoption of cryptocurrency ATMs has continued to grow, fueled by different factors.

Indeed, as of December 30, the number of crypto ATMs installed worldwide stood at 38,597, an addition of approximately 4,239 machines from the 34,358 recorded in January 2022, according to data from CoinATMRadar.

Number of crypto ATM cards installed. Source: CoinATMRadar

Notably, the growth in crypto ATMs comes after a previous Finbold report indicated that the number of installed machines first stalled in September. Similarly, despite market volatility, another report indicates that the crypto ATM market will likely grow by more than 60% by 2030.

Additionally, the current bear market has generally impacted most companies in the industry. Notably, most businesses, including ATM operators, have been forced to slow their growth trajectory, waiting for market conditions to stabilize.

Crypto ATM Growth Drivers

The growth in crypto ATM adoption can be attributed to several factors. For one, the use of cryptocurrency for day-to-day transactions is becoming more commonplace, with more and more businesses accepting digital currencies as a form of payment.

Additionally, the growing awareness and understanding of cryptocurrency among the general public has led to an increased demand for convenient and accessible ways to buy and sell digital assets.

At the same time, the latest crypto bull run of 2021 has also contributed to the increased use of ATMs in different jurisdictions. Notably, the use of ATMs is crucial in promoting the adoption of digital assets, providing an alternative to traditional financial platforms.

However, it is worth mentioning that in 2023, if the bear market prevails, it will be interesting to monitor the impact of the conditions on the outlook for crypto ATMs.

Besides the bear market implication, the crypto ATM space is still under threat from regulatory scrutiny. For example, some jurisdictions consider crypto ATMs as money laundering channels. In this line, the Federal Bureau of Investigation (FBI) has issued a warning about crypto ATMs and QR codes used by hackers to trick people.

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