Crypto

Global Crypto ATM Transactions Drop in Bear Market

Crypto ATMs have been constantly appearing across the world for years. In 2021, the market saw its highest growth rate – but in a crippling year for crypto, ATM installs stagnated while transaction numbers plummeted, Bloomberg reports.

At the start of 2021, there were just over 14,000 crypto ATMs globally, according to Coin ATM Radar. At the 2022 peak, it had jumped 146% to 34,400.

Since, growth has relatively plateaued. For the first time since 2018, the numbers even dropped between August and September of this year, by 440 ATMs.

Growth of crypto ATM installs over the years, Going through Coin operated ATM radar.

Data shows that 796 crypto ATMs were taken down in August, many of them in the United States. Europe and Canada accelerated the change by installing locally, which resulted in a loss of 440. Since then, the number has increased slightly – growth in bitcoin ATM installs has remained below 1%.

Transactions — the dollar amounts received by crypto ATMs — began to drop sharply in October 2021, dropping from $329 million to $226 million in February 2022. Transactions then spiked to $290 million in one months only, but have been steadily falling since June, down to $230 million to October 1. This reflects a significant drop in value for business owners who host a crypto ATM, especially since some receive a percentage of the revenue generated by a unit.

Graphics Going through Bloomberg.

Data from Crypto ATM suggests that transactions have fallen this year on par with a major decline in the crypto market. Yet regional factors and regulatory concerns are also at play – Singapore closed all Bitcoin ATMs in January while Japan made a 180 and kissed them again just two months ago.

Read more: It’s a weird time for Japan to accept crypto ATMs, but it’s got it anyway

The struggles of the US crypto ATM market

The United States remains ahead of the pack when it comes to crypto ATM distribution. It currently houses 87% of ATMs, just under 34,000 across the country. However, as Bloomberg noted, many in the United States are in little or no use. One operator in the country, CoinCloud, has around 5,000 ATMs. In November, he told Bloomberg he was facing $125 million in debt accumulated by aggressive expansion plans.

Its biggest competitor Bitcoin Depot, which has around 7,000, remains optimistic about Stagnant Installations and Dive-in Transactions. It has slowed down installations and is instead trying to move machines to high-traffic locations.

“A lot of people just try to be conservative,” said Brandon Mintz, its founder and CEO. “The company has not been affected by industry fluctuations,” he added.

Bitcoin Depot plans to go public in the first quarter of 2023. The founder says he is “comfortable” with his ability to repay his debt.

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