The crypto industry has seen a surge in the launch of new wallets from various companies, including centralized exchanges, NFT marketplaces, and DeFi protocols. The question arises as to why there is a need for more wallets, but the focus should be on why every company wants its own wallet. Owning the end-user through a wallet is a profitable business, as wallets have a close relationship with users and can command a take-rate through in-wallet swaps. Wallet providers also have access to valuable transaction order-flow data that can be sold to professional block builders. Wallets are becoming the preferred interface for onchain activity, and the "Fat Wallet" thesis predicts that wallets will monetize their users in various ways in the future. Wallets are competing to attract users in different ways, including market incentives and exclusive features. The competition in the market ensures that no single wallet will dominate the industry.



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