A Solana-focused crypto wallet, Phantom, has reported a significant increase in active monthly users, reaching a new milestone of 3.2 million users in January.

Exponential Growth

In an interview with TechCrunch, Phantom co-founder and CEO Brandon Millman shared that the wallet’s user base saw a remarkable surge, with a 220% increase from 1 million users in January 2023. Alongside the rise in monthly active users, the wallet also saw over 940,000 installs, marking a 460% surge compared to the same period.

Airdrops and Ecosystem Growth

Millman attributed this growth to multiple airdrops on Solana earlier in the year, specifically mentioning the Jito and Jupiter airdrops as pivotal moments for the ecosystem. He emphasized Solana’s position as a top-tier ecosystem that attracts top builders globally.

“Solana has reached escape velocity and proved itself to be a first-class ecosystem. It’s the platform attracting some of the best builders in the world.” – Brandon Millman

Additionally, Millman highlighted the increasing activity in decentralized finance (defi) as a contributing factor to Phantom’s growth. Defi protocols incentivize usage through airdrops, making crypto wallets like Phantom a key entry point for newcomers to the crypto space.

Focus on Growth

While not prioritizing revenue generation, Millman mentioned that Phantom is currently focused on user growth to attract developers and expand the ecosystem. The more users onboard, the more applications and users the platform can attract.

“We’re not super focused on generating revenue, but we prefer to feed it back to the user growth. The more users that sign up, the more developers are attracted to building on the ecosystem, and the more applications and users we get.” – Brandon Millman

Expansion and Funding

Initially launched in 2021 with a focus on Solana, Phantom later expanded its services to include Bitcoin. In January 2022, the wallet completed a $109 million series B funding round led by Paradigm, reaching a valuation of $1.2 billion. Other investors included Jump Capital, Andreessen Horowitz (a16z), Solana, and Variant.

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