Explore this week's key macro trend: the upcoming FOMC meeting, and how it could potentially impact crypto and traditional markets.

Following last year's dovish moves by the US Federal Reserve, which adjusted the target range to 4.25%–4.5%, a potential reduction in interest rates could stimulate the US economy and provide a much-needed boost to both cryptocurrencies and stocks. With the next Federal Open Market Committee (FOMC) meeting set for March 19, 2025, investors are watching closely for insights into policymakers' outlook and future plans.

In this article, Bybit explores this week's key macro trend: the upcoming FOMC meeting. But first, let's review 

Last week, key macroeconomic reports in the US included job openings, the Core Consumer Price Index (CPI) and the Core Producer Price Index (PPI).

 232,000 to 7.74 million, hires rose 19,000 to nearly 5.4 million and layoffs declined (for a fourth straight month) to 34,000. Additionally, a revised December 2024 reading showed 7.508 million vacancies, down from the originally reported 7.6 million.

With job openings exceeding forecasts of 7.63 million, the labor market remains resilient despite the Federal Reserve's restrictive monetary policy.

In February, the CPI for core (and all) items 

, slightly below the expected 0.3% increase. On an annual basis, headline inflation reached 2.8% and core inflation hit 3.1%, both 0.1% lower than analysts' forecasts.

This softer-than-expected inflation suggests that price pressures are gradually easing, potentially strengthening the case for a Fed rate cut later this year. However, trade policy uncertainty and tariffs remain key risks.

The PPI, a key measure of pipeline inflation pressures, 

 in February 2025 after jumping 0.6% in January. This was well below the 0.3% increase expected by analysts, suggesting easing cost pressures on producers.

The unexpected 0.1% decline in core PPI (excluding food and energy) further supports this trend, potentially giving the Fed more flexibility in future rate decisions.

Macro events' impact on crypto and equity markets

Following an 8.3% drop on Mar 10, 2025 after the US job openings report, the combined crypto market cap recovered all losses by March 16, closing the week at $2.75 trillion. Bitcoin followed the same trend, gaining 2.35% over seven days, while Ethereum and Solana posted a 7.24% loss and a 2.18% gain, respectively.

Equity and crypto markets moved in the same direction last week. After a sharp decline on March 10, all three major US stock indices — the S&P 500 (SPX), Nasdaq-100 (NDX) and Dow Jones Industrial Average (DJI) — entered a recovery. However, equity markets closed the week lower, with the SPX, NDX and DJI losing 2.29%, 2.46% and 3.09%, respectively.

FOMC Meeting on Mar 19, 2025: What are investors watching for?

The Federal Open Market Committee (FOMC) is widely expected to hold interest rates steady at its meeting on Mar 19, 2025. According to the 

, there’s just a 1% probability of a rate cut, with a 99% chance that the federal funds rate remains at 4.25%–4.5%. 

Fed Chair Jerome Powell has emphasized that inflation remains 

, while the labor market continues to show strength. Given these conditions, policymakers are expected to maintain a cautious stance, waiting for more economic data before adjusting policy.

Although a March rate cut is highly unlikely, investors will focus on signals regarding future policy moves, particularly for the upcoming May and June meetings. The FOMC is set to release updated economic projections, including forecasts for inflation, GDP growth and employment. If these forecasts weaken, the chances of a May rate cut could rise. Powell's press conference will be closely watched for clues about the Fed's timing for potential rate cuts.

While March rate cuts seem to be off the table, a Fed rate cut by June remains a possibility. Based on FedWatch data, there’s an 18% probability of a rate cut in May and a 68.5% chance in June. If the Fed cuts rates in June, there’s a 57.3% probability it will lower the target range to 4.0%–4.25% and an 11.2% chance it will drop to 3.75%–4.0%.

Beyond the immediate rate decision, changes in the Fed's tone will be key. If the Fed expresses less confidence in economic strength, or highlights growing risks from tariffs and fiscal tightening, it could signal a shift toward a more dovish stance. The bond market's reaction will also be crucial, as any shift in the Fed's tone could impact Treasury yields, equities and risk sentiment.

Will Powell pause or slow quantitative tightening (QT)?

Quantitative tightening (QT) is the Fed's process of shrinking its balance sheet by allowing bonds to mature without reinvesting the proceeds. This effectively removes liquidity from financial markets, making borrowing more expensive, and slowing economic activity. The Fed 

 in June 2022 as part of its strategy to combat inflation, complementing interest rate hikes by draining excess liquidity from markets.

 adding uncertainty, some FOMC officials are now considering pausing or slowing QT to prevent liquidity shortages. The Fed has already 

 from financial markets, and continued reductions could strain bank reserves and money markets. If QT persists at its current pace, liquidity risks may emerge as the Treasury refills its Treasury General Account (TGA). A sudden loss of liquidity could disrupt short-term lending markets, forcing the Fed to intervene before financial conditions deteriorate.

Market sentiment is shifting, with Polymarket bettors assigning a 

 of QT ending before May. If Powell signals a slowdown, stocks and cryptocurrencies could benefit from increased liquidity. However, the Fed remains cautious, as an early halt to QT could weaken its inflation-fighting efforts.

March 19 FOMC: A key macro event for financial markets

The Federal Reserve's upcoming March 19 FOMC meeting is a critical event for investors, with markets widely expecting no rate cut, as inflation remains above target and the labor market remains strong.

Meanwhile, last week's economic data showed resilient job openings, softer-than-expected inflation and flat producer prices, signaling a mixed outlook for monetary policy. Additionally, speculation is rising that the Fed may pause or slow quantitative tightening due to debt ceiling concerns. This shift would increase liquidity, potentially boosting risk assets, such as crypto and equities.

Did you know that you can gain exposure to gold, forex and other financial markets via 

? After setting up an MT5 account, you can trade over 100 pairs with up to 500x leverage in one unified interface featuring tight spreads, top-tier liquidity and tailored fees. Ready to start trading? 

Intermediate

macro.png

Macro this week: What to expect from the March 19 FOMC meeting

Onchain Labs, in collaboration with The Arbitrum Foundation, is launching a program to accelerate onchain application development on Arbitrum.

Daily top performer — EOS Network (EOS)

The S&P 500 fell 1.07% as tech stocks declined, with Tesla down 5.3%. Investors await the Fed’s policy decision amid trade tensions and recession concerns. Gold hit a record $3,030 as tariffs, Middle East tensions, and Fed rate cut bets drive demand. Markets await the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, fell by 0.41%, with Bitcoin and Ether down by 2.61% and 1.57% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is EOS, up 30.9% after EOS Network unveils Vaulta, a Web3 banking platform bridging crypto and traditional finance.

EOS Network (EOS), launched in 2018, is a fast, cost-effective blockchain for DApps, using Delegated Proof-of-Stake and EOS tokens for governance. It features rapid transactions, flexible smart contracts, and developer-friendly tools for seamless upgrades and execution. EOS Network introduces 

, a Web3 banking platform bridging digital assets and traditional finance. Launching in May 2025, it will support asset tokenization and DeFi solutions, guided by a Banking Advisory Council for compliance and adoption.

Check out the latest prices, charts, and data of 

 with The Arbitrum Foundation, is launching a program to accelerate onchain application development on Arbitrum. As the original builders of Arbitrum, Offchain Labs brings deep technical expertise and user insights to support developers in creating innovative applications. The initiative will provide product and go-to-market support while ensuring fair and equitable project launches. With Arbitrum’s advanced technology and strong developer ecosystem, Onchain Labs aims to drive the next wave of industry-leading applications, with its first project set to debut soon.

Yesterday, BTC spot ETFs saw $9.0 million in outflows, all from non-GBTC funds.

 lets users earn airdrop rewards by buying and staking lvlUSD, a stablecoin backed by USDT and USDC. Providing liquidity to the lvlUSD/USDC pool on Curve boosts XP earnings up to 40x. The program also grants eligibility for the Symbiotic airdrop, offering two rewards in one.

Beginner

1.png

Onchain Labs launches program to accelerate Arbitrum app development

Eclipse merges Ethereum & Solana, using Solana’s SVM for high scalability. With modular design & ZK proofs, it offers fast, low-cost transactions.

 (ETH) network has revolutionized the way we look at blockchain technology. Unfortunately, Ethereum has also suffered from performance issues, due to network congestion and its suboptimal scalability setup. Two approaches to dealing with the blockchain's performance weaknesses took off around 2020 and 2021 — one was active work on alternative blockchain networks that would deliver better scalability and throughput capacity and, in parallel with it, research and development on Ethereum-linked 

The first approach led to the introduction of several high-performance networks, among which 

 (SOL) has stood out, thanks to its excellent throughput capacity of up to 65,000 

 (TPS). In turn, the work on Layer 2 solutions resulted in numerous rollup networks, with 

 (OP) probably the most dominant of these as of 2025. Both Solana and the leading rollups servicing Ethereum feature much lower transaction fees and higher processing capacity compared to Ethereum, the world's premier smart contract chain.

However, Solana isn't directly compatible with Ethereum to leverage the latter's vast ecosystem, while the existing rollups come with their own share of drawbacks — poor compatibility with non-Ethereum environments, inefficient data availability (DA) layers, inflexible validation of cryptographic proofs that accompany transaction data and the lack of parallelized processing.

Eclipse is an Ethereum Layer 2 network that utilizes the Solana Virtual Machine (SVM) to offer a platform compatible with both Solana and Ethereum. Its SVM-powered engine, 

 (TIA)–based DA layer and selective use of 

 (ZK) proofs allow Eclipse to achieve stellar performance characteristics and address the main drawbacks of existing Layer 2 rollups.

 is an Ethereum Layer 2 solution that uses Solana's SVM as its processing engine to achieve greater scalability and throughput capabilities than existing Layer 2 rollups. 

The network also leverages a modular design, outsourcing its data availability (DA) layer to Celestia. Furthermore, Eclipse employs ZK proofs in an otherwise optimistic validation environment to streamline transaction processing in cases where the standard optimistic fraud proofs are challenged. 

All of these properties allow Eclipse to achieve unparalleled performance characteristics by the standards of the Ethereum ecosystem. The platform boasts transaction fees of just $0.0002, and can theoretically scale up to 65,000 TPS, the upper limit of the SVM.

Eclipse’s network has implemented the Hyperlane cross-chain protocol, allowing it to communicate directly with the ecosystems of Solana and Ethereum. As such, it's the first Ethereum-linked rollup that features direct compatibility with the Solana chain. This allows Eclipse to potentially unify the DApp ecosystems of the two major blockchains.

The Eclipse testnet was unveiled in early 2024, and its 

 was launched in November 2024 and operates without a native token of its own, instead using ETH for transaction fees and other operations. Based in San Francisco, California, Eclipse was founded in 2022 by entrepreneur/angel investor Sam Thapaliya and blockchain developer Neel Somani. The project boasts an impressive list of institutional and individual investors that includes Polychain Capital and Anatoly Yakovenko, co-founder of Solana.

What is the Solana Virtual Machine (SVM)?

Eclipse's execution engine is based on Solana's SVM, which features several properties that make it more scalable and adaptable to heavy loads than Ethereum's native virtual machine, the 

. The SVM can handle up to 65,000 TPS, while the realistic throughput observed on Ethereum at its 

There’s been much discussion in the industry about the EVM scaling up to hundreds of thousands of TPS, but these improvements have yet to materialize, and are mostly dependent on utilizing Layer 2 rollups linked to the main chain. A key factor contributing to the SVM's superior throughput capacity is its ability to process multiple transactions in parallel. Unlike the SVM, the EVM engine doesn't support parallelized processing.

Another feature of Eclipse’s SVM is the ability to support programming languages commonly used in the Solana ecosystem — Rust and C. Compared to Solidity, the primary programming language used in EVM environments, Rust and C offer certain advantages in terms of both performance and security.

Like other Layer 2 platforms, Eclipse uses the Ethereum Layer 1 network for transaction settlement. This is where the finality and validity of transactions processed on Layer 2 are confirmed. The use of Layer 1 ensures that Eclipse takes advantage of Ethereum’s well-regarded security.

For end-users, a relevant detail of Eclipse’s settlement is the absence of any platform-specific token to pay for gas. Eclipse utilizes Ether (ETH) as its gas fee currency, and there are plans to introduce a gas fee abstraction mechanism that will let users pay transaction fees in other cryptocurrencies as well, e.g., in the 

Eclipse's execution layer is handled by its SVM. The platform uses a validating bridge to maintain a connection to Ethereum Layer 1, where the final transaction settlement occurs. We noted above that one key reason for Eclipse’s stellar throughput capacity is its SVM, which is capable of parallelized processing. 

Another essential aspect of its execution engine, also supported to a large extent by the parallelized processing, is the ability to smooth out transaction fees on the network via local fee markets, a blockchain mechanism that regulates platform-wide gas fees. Execution engines such as EVM are based on a global fee market system. On EVM-based chains, high demand from one app (e.g., 

) can drastically raise transaction fees for everyone. Eclipse’s SVM solves this problem by using local fee markets — instead of increasing fees across the entire network, only transactions related to the high-demand app are affected.

The DA layer is a critical part of any Layer 2 platform. It ensures that the data needed to verify transactions and execute smart contracts is publicly accessible and available for Layer 1 validators to check. Consistent with its principle of modular blockchain architecture, Eclipse outsources its DA layer to Celestia, a blockchain platform that leases its high-performance DA layer to Layer 2 networks.

In general, the Eclipse chain operates as an optimistic rollup. However, at the same time, the platform uses ZK proofs via the 

 verification provider in cases where validators on Ethereum Layer 1 challenge the standard optimistic fraud proofs. The presentation of ZK validity proofs upon these challenges significantly speeds up the verification process. This combination of optimistic fraud proofs (known for being less computationally intensive than ZK proofs) and ZK proofs during validity disputes ensures that Eclipse can efficiently validate transactions.

 to facilitate the transfer of funds between the Eclipse, Ethereum and Solana blockchains. The platform's native bridge, the 

, is primarily designed for the transfer of assets between Ethereum and Eclipse. Meanwhile, the 

 is the main bridging solution for moving crypto funds between Eclipse, Ethereum and Solana.

Additionally, several other bridges service the Eclipse ecosystem. Some of them focus on transfers between Eclipse and Ethereum, but some can also access other blockchain environments. For instance, the Retro Bridge allows you to move assets between Eclipse and a variety of blockchain platforms, including 

There's also the Hyperlane-powered Stride Bridge, which lets Eclipse users access blockchain ecosystems beyond the major ones. Using the Stride Bridge, Eclipse users can move funds from Celestia and 

 (STRD). The bridge also lists support for network transfers from the Forma blockchain and Ethereum. However, as of the time of this writing on Mar 17, 2025, transfers from these two chains to Eclipse aren’t yet supported.

 is a unified restaking token (URT) launched by Eclipse in partnership with the Nucleus yield generation services provider. It allows users to earn rewards from multiple Ethereum yield-generating protocols. By minting tETH through deposits of eligible 

 tokens (LRTs), users can benefit from diversified risk and reward exposure, with periodic yield increases and the option for redemption at full value on Ethereum or Eclipse.

 (WETH), ether.fi’s weETH, Renzo Protocol’s ezETH, Swell Network’s rswETH, Dinero’s apxETH and Puffer Finance’s pufETH.

 is an Eclipse community-driven game in which users grow "grass" by tapping or bridging assets to Eclipse. By completing app-based boosts, users can increase their grass growth rate. The goal is to feed Turbo, an ever-hungry cow, by maximizing grass growth through bridging various assets like ETH, SOL, TIA and popular 

 USDT and USDC. Solana-based tokens, such as ezSOL, JitoSOL and kySOL, can also be used to grow grass within the game.

, you need to complete a series of tasks — follow Eclipse on X, visit Eclipse’s website, explore its app ecosystem and swap $10 worth of crypto via Umbra, a privacy-focused Ethereum payment protocol. This campaign is valid until Mar 28, 2025, 7AM UTC.

The Eclipse team has come up with something unique within the wider EVM ecosystem: the ability to use Solana's high-performance execution engine adapted for Ethereum, the SVM. It offers numerous advantages over the EVM, including executing transactions in parallel and leveraging local fee markets. At the same time, while the SVM forms the backbone of transaction processing on the chain, Eclipse aims to remain within its general rollup-centric road map, operating primarily as an Ethereum rollup network. 

Besides integrating the SVM into its largely Ethereum-focused platform, Eclipse leverages modular architecture principles, outsourcing its DA layer to Celestia, one of the leading providers of DA services in the 

 industry. All of these architectural choices have resulted in a Layer 2 chain that clearly stands out for its performance in the competitive world of Ethereum rollup solutions.

eclipse crypto.png

Eclipse: The perfect fusion of Ethereum and Solana

Elixir (ELX) is a blockchain platform bridging institutional RWAs to DeFi, offering yield opportunities and liquidity support for decentralized exchanges.

 (RWAs) are one of the hottest topics in 

 setting still comes with its own share of issues. First, asset owners such as investment funds don't have a wide choice of alternatives for securely tokenizing their assets in a compliant way. Secondly, there's a lack of sufficient avenues for the active use of RWAs within DeFi protocols after the assets have been tokenized and brought on-chain.

As a result, many institutional asset owners are still hesitant to use their funds within a blockchain environment. Those brave enough to adopt RWAs by tokenizing their assets on-chain face the reality of limited choices for deriving healthy returns from their investment. 

Due to these factors, RWAs — despite having great promise as a bridge between traditional and web3 finance — are still underutilized within DeFi.

Elixir is a modular blockchain and DeFi-focused platform that aims to make it easy for institutional investors to utilize their RWAs in yield-bearing products on-chain. The platform also acts as a 

, decentralized USD (deUSD), plays a key role in enabling active RWA use for yield and liquidity provision to partner DEXs.

 (ELX) is a blockchain network that facilitates institutional investors' use of RWAs in the DeFi ecosystem and provides liquidity support to DEXs. 

The project features a synthetic stablecoin, deUSD, that’s backed by collateral made up of two crypto assets — USDS and 

 (SKY), formerly known as MakerDAO (MKR), while stETH is a tokenized version of staked Ether (ETH) provided by the 

Elixir enables institutional holders of tokenized RWAs, such as those issued by Securitize and other RWA service providers, to mint deUSD and use it in DeFi while still earning yields from their underlying assets.

Elixir also helps other DEXs by enabling its users to supply liquidity to order book–based exchanges easily. This reduces DEXs' reliance on centralized market makers and allows them to access additional liquidity. Users who provide liquidity earn subsidized APYs, which are either incentivized by Elixir or the DEXs themselves. As of early 2025, Elixir has already been integrated by more than 30 DEX platforms.

The Elixir project was founded in 2022 by Philip Forte and Christopher Gilbert. Its chain launched the first phase of its mainnet operations in October 2024 and held a token generation event (TGE) for its native cryptocurrency, ELX, on Mar 7, 2025.

 (DPoS) consensus model. The project’s documentation states that its network features a highly modular design and high throughput capacity.

To synchronize its work with other DEXs, the network uses exchange feeds, which pull live trading data from these DEXs and send it to Elixir's data aggregators. An aggregator node is then responsible for creating an encrypted database from these feeds and passing it to the chain’s validator and auditor nodes. Then, relay nodes execute trades on DEXs using their API keys, collect order proposals from validators and send them for auditing before final execution.

Elixir's validators secure the network using a DPoS consensus model, whereby users can delegate their funds to a preferred full validator node. The network requires a 66% consensus among its active validator nodes in order to approve transaction blocks.

A validator node needs to have at least 9,000 ELX 

 or delegated to it to earn block rewards. As such, it's important for users to choose a reasonably popular validator in order to ensure they can earn rewards from their delegated funds. For instance, as of the time of this writing (Mar 17, 2025), fewer than 30 Elixir validators have enough funds staked with them to generate rewards.

We noted above that relay nodes send order data for executing transactions on other DEXs for further auditing before the actual execution occurs. Auditors are the 

 responsible for verifying this data before the orders can be placed. In addition to the order data sent by relay nodes, auditors also use the encrypted exchange feed data sent by aggregators.

Auditors use these two critical data sources — the encrypted exchange feed data from aggregators and the order data from relay nodes — to verify and approve the orders for final execution on the participating DEXs.

 that ensures the smooth operation of several key network activities: staking, reward distributions to validators and financial penalties to misbehaving validators, known as slashing.

In the case of disputes or inconsistencies in the network data, the controller and auditors resolve these together, acting as a dispute resolution layer.

deUSD is a synthetic stablecoin introduced by Elixir. Subject to approval via a governance vote, the token will be used for staking, allowing users to earn rewards from protocol fees. The staked version of deUSD, sdeUSD, is an asset that’s used to accrue yields from rewards generated both on Elixir and via its partner DeFi platforms.

Importantly, deUSD is also used to provide liquidity in the form of collateral to participating DEXs. The deUSD stablecoin enables users in the institutional domain, specifically RWA holders, to obtain a sufficiently liquid asset to participate in the wider DeFi ecosystem. According to the project’s documentation, more than ten leading institutional finance organizations have already adopted deUSD for their assets.

deUSD differs from many other stablecoins in that it isn’t collateralized by US dollar reserves. The token’s collateral is made up of Lido’s stETH and Sky Protocol’s USDS. To ensure its stability, deUSD is subject to an 

 adjusting overcollateralization mechanism, the 

When funding rates become negative, the OCF shifts more of deUSD’s collateral into USDS. If the OCF’s value drops too much, it automatically converts its assets into USDS to ensure deUSD’s backing remains intact. Meanwhile, when funding rates become positive, funding rate exposure — that is, the potential gains and costs from holding leveraged positions in 

 contracts — is used to generate additional returns.

During the project’s earlier period of operations, 

 (CEXs) are expected to provide the bulk of liquidity for deUSD and facilitate the token’s minting and redemption. Eventually, the protocol plans to shift more of the backing and liquidity management to decentralized platforms. The minting/redeeming process will be supported by authorized market makers, who will use stETH collateral and engage in basis trading to manage risk.

The Elixir protocol's native token, ELX, is primarily used for governance, staking and stake delegation. Certain rewards, such as 

, can also be distributed in ELX. The token’s total and maximum supply is 1 billion.

The ELX token is available on Bybit’s Spot market as a 

. You can also take advantage of Bybit’s campaign dedicated to the token to grab a share of the 

Under the terms of the campaign, new users can earn ELX rewards by accumulating a deposit volume of at least 200 ELX, or by depositing at least 100 USDT and trading 100 USDT worth of ELX via their first trade. Existing users can also qualify for rewards by trading at least 500 USDT worth of ELX on the Spot market. The campaign is valid till Mar 24, 2025, 9AM UTC.

Bybit also offers two additional ELX airdrop campaigns to its users. One of these is the 

 event. In order to receive your share of the airdrop, just follow these three steps: 

The airdrop is valid till Mar 31, 2025, 10AM UTC.

. Win a share of the 40,000 ELX prize pool by registering for the event, completing specified tasks to earn Lucky Draw tickets and spinning the wheel by using your tickets. You can register for the event until Mar 20, 2025, 12AM UTC, and the Lucky Spin period ends exactly 24 hours after this date.

Additionally, Elixir runs its own reward campaign, 

, that lets you earn Potions, points that help you build power across the platform’s network of participating DEXs. However, note that participation in the Apothecary campaign doesn't guarantee an airdrop of ELX tokens.

Elixir is a relatively new entrant in the DeFi space. The project launched the first phase of its mainnet in October 2024, with the main launch in March 2025. Elixir’s platform aims to address the issue of inflexibility of RWA use 

. The project aims to focus its efforts on larger institutional players, including leading investment funds.

At the same time, while Elixir pursues the ambitious goal of attracting the big players of the financial world via its RWA stream, its second key specialization — liquidity support to DEXs — should provide enough quick wins within the shorter term. With more than 30 DEXs already in Elixir’s ecosystem, it looks like this specialization is already paying dividends. The question now is: Will the push for the top brass of the institutional finance world enjoy similar success? 

elixir crypto.png

Elixir (ELX): The institutional bridge to DeFi liquidity

Bybit Learn

web3

Web3 wallets are a form of digital storage for non-fungible tokens, cryptocurrencies and other digital assets. Discover the best web3 wallets in this article.

Web3_Create_Wallet_Landing_Page.png

Bybit_Web3_Wallet_CTA_Banner.png

As cryptocurrency and NFTs become more commonplace, reliable 

 are quickly becoming necessary. Both casual traders and long-term investors can benefit from having a reliable wallet to store their cryptocurrency and other digital assets. Some wallets even allow you to 

 your assets with the click of a button. Others allow you to quickly look at your portfolio, and make fast financial decisions. Whether you’re trying to find the best way to collect 

 collection or regularly trade crypto, this guide will help you learn about 18 of the best web3 wallets available.

Web3 wallets are a form of digital storage for non-fungible tokens, cryptocurrencies and other digital assets. Web3 wallets function similarly to a normal 

, however, they come with the added function of being able to interact with a variety of decentralized applications (

). In fact, some web3 wallets are specifically designed to interact with a single 

There are two different types of web3 wallets. 

 are a type of hardware wallet made to store your assets offline. Long-term investors who aren’t trading every day, or who want to keep a large portion of their assets secure, often use cold wallets. Because the wallet is offline most of the time, it’s less susceptible to scams and hackers.

Software wallets are known as hot wallets. They rely on various applications to function. Hot wallets are DApps that are always connected to the internet. You can usually access a hot wallet via an app on your smartphone, or on an internet browser. While this does make your assets slightly more vulnerable to hackers, it’s a practical choice for active traders. Hot wallets are also known for their simple interfaces, making them popular among beginning traders and investors.

When choosing a web3 wallet, you have lots of choices. Carefully consider your storage needs, then select which one has the features you like. It's not uncommon for users to have multiple wallets; just remember that each one has its own private key.

To access them easily, find a safe place where you can write down each key. Many people keep a physical record of their keys and respective balances in a notebook — like keeping a bank ledger. They then store the ledger, or notebook, in a fireproof safe.

A recent addition to the Bybit platform, 

 has quickly climbed its way to the top to become one of the best web3 wallets available. The exchange prides itself on its industrial-grade security and convenience. Users simply have to remember their login details when they want to access their Bybit Wallets, which gives them peace of mind. The secure crypto wallet also boasts one-click creation, making it very user-friendly. The Bybit Web3 Portal is where users can find background information on all the DApps compatible with the Bybit Wallet. They can also find guides and tips, which will come in handy as they navigate the web3 ecosystem. 

While the Bybit Wallet is a hot wallet, users can be assured their funds will be kept safe. Plus, if they ever find themselves being hacked, or if they forget their login information, they can always count on Bybit’s 24/7 live customer support for assistance. 

 is one of the most popular web3 wallets, and is frequently recommended for its ease of use. Unlike a few web3 wallets on this list, MetaMask is available on Google Play, the Apple App Store, Chrome, Firefox, Edge and Brave.

While the wallet’s service focuses on the 

 blockchain, it’s incredibly versatile and can easily access other blockchains. Gamers wanting to earn GameFi rewards can use MetaMask as a primary wallet. It’s also open-source with a strong development community behind it, so it has consistently added features and adapted to the needs of users. Although you’ll need to pay the Ethereum gas fee when making transactions, MetaMask is a free-to-use wallet. A note of caution: Beware of phony MetaMask sites, and never input your seed phrase before checking to see that the MetaMask site you’re on is authentic, or scammers can steal all of your funds.

 is well-known for its user-friendly online cryptocurrency trading platform. Coinbase Wallet is a crypto wallet that uses web3 technology. The 

 wallet is kept separate from the centralized platform, adding an extra layer of security. 

While the crypto wallet is already straightforward, Coinbase takes it a step further by enabling usernames. Rather than sending crypto assets to a long string of numbers and letters, you’ll have a username that matches your crypto wallet address. This helps to reduce human error when sending and receiving crypto assets, especially since blockchain transactions cannot be reversed. While Coinbase doesn’t charge a fee for using their crypto wallet, they do charge a 1% transaction fee.

 makes two hardware wallets — the Nano S Plus and the Nano X. Both are popular choices, since they support over 1,000 tokens. The wallets, which resemble a typical thumb drive, connect using a USB. Ledger also uses one of the most secure certification chips for added security. The Ledger Live app lets you access, buy and exchange your assets. The biggest difference between the Nano S Plus and the Nano X is that the latter is bluetooth compatible with the Ledger Live Mobile, while the former isn’t.

 is a fast-growing platform with an international base of over 50 million users. The DeFi wallet allows users to easily trade over 250 crypto assets and more than 20 fiat currencies. Users can also generate rewards for staking their crypto assets, making the platform popular among long-term investors.

 DeFi Wallet is the 0.3% transaction fee on top of any blockchain gas fees that apply to the transaction. 

 is a multi-asset mobile wallet built with security in mind. Besides supporting multiple assets and cryptocurrencies, the hot wallet enables users to easily transfer digital assets between blockchains. Trust Wallet also allows users to stake their digital assets to earn rewards and interest. For ease of use, the app clearly displays your crypto assets and NFTs.

The biggest downside of Trust Wallet is that it’s mobile only. Despite this, the mobile wallet is very user-friendly and doesn’t have a high learning curve as other hot web3 wallets do. The Trust Wallet website accurately tells users that they’ll be able to buy BTC within five minutes.

 is another hot crypto wallet that allows users to stake and exchange several different assets. The platform currently supports over 50 blockchains and more than 400 tokens. The web3 wallet also offers users rewards in its native token, GRD. It’s a great choice for new users because they can learn about different blockchain and DeFi applications on the app.

 supports only Ethereum tokens, but that hasn’t stopped it from making people’s lists of top software wallets. Designed to be the perfect introduction to DeFi, Argent offers a user-friendly experience. It easily integrates with several DApps, although the wallet is only accessible on iOS and Android.

To create a new Argent Wallet, you’ll need to pay network fees because each crypto wallet is a smart contract on the Ethereum blockchain. You’ll also pay network fees for transfers, adding a guardian, using WalletConnect, DeFi integrations, in-app token trading and wallet recovery. There are also exchange fees and Ethereum gas fees for exchanging crypto using the wallet.

If you’re looking for a browser-based wallet instead, consider the 

 on the StarkNet ecosystem. This browser extension works perfectly for both Google Chrome and Firefox. Do take note, however, that Argent Wallet and Argent X Wallet are 

, which means that you would not be able to recover your Argent X Wallet on the Argent Wallet mobile app, and vice versa.

is a web3 browser that enables users to quickly switch between wallets and tools. For example, social networks such as Discord, Twitter and Telegram can easily be accessed in the sidebar, saving you time while managing your assets. New crypto traders will be pleased with the Opera Crypto Browser features and multi-wallet management, while more experienced traders can benefit from the advanced features available on the server. Simply download, create a new wallet and write down the seed phrase. Then you can customize your web3 browsing experience.

, also called MEW, allows users to quickly and seamlessly interact with the Ethereum blockchain. The open-source wallet can be downloaded as a browser extension on both Android and iOS. You can also access MyEtherWallet directly on the web. While convenient for new users, MEW doesn't allow you to directly access your private keys. Instead, it uses multi-layer encryption to store your private keys on your device. However, you can recover your wallet with a seed phrase. Best of all, there are no fees for using the wallet — users pay only gas fees when transferring assets.

 puts your favorite DApps at your fingertips without the need for a seed phrase or private key. Instead, you create a simple username and password. Multi-factor authentication adds extra security, so you can feel safe while using this Ethereum-powered smart contract wallet. Like many of the other wallets mentioned on this list, Authereum doesn’t charge a transaction fee.

 is a noncustodial wallet that supports a wide range of DApps on the Ethereum blockchain. This software wallet works with both Android and iOS. It’s designed for users who collect NFTs, enabling them to easily access their collection. The Rainbow platform also allows for easy transactions between several ERC-20 tokens, and it has a limited list of pre-approved tokens that users can swap.

Rainbow Wallet is geared toward new users because it seamlessly integrates onto mobile devices. Users can back up their seed phrases and private keys for quick and easy account recovery. They can also back up their data and seed phrases regularly to improve security. For a mobile wallet, Rainbow’s a smart choice.

 is a crypto software wallet that enables users to effectively manage and exchange over 245 different cryptocurrencies. The multichain web3 wallet allows users to quickly buy crypto directly within the mobile app. A browser extension also allows for quick access to NFTs, DeFi apps and other digital assets.

As a desktop hot wallet, Exodus is practical and easy to use; however, it has slightly higher fees than other software wallets on this list. The network generates money from third-party exchange API providers and works to process transactions as fast as possible. A lot of the exchange process is automated. You’ll see the transaction and associated network fees prior to completion.

 stands apart from other software wallets because of its messaging feature. In-wallet messaging allows you to communicate with other wallet users, making it useful especially when it comes to buying, selling and trading NFTs. You can also see your NFTs in a gallery format on the app, helping you to stay organized. The Ethereum crypto wallet also supports several GameFi and DeFi applications.

, previously known as Algorand Wallet, is a community-driven wallet that connects you with the Algorand blockchain. Then users can securely connect to any DApp within the Algorand ecosystem with their mobile devices. Besides trading cryptocurrency, the wallet allows for easy NFT management and viewing. The app is supported by cold storage wallets like Ledger, giving you an extra layer of security.

One distinguishing feature of Pera Wallet is its focus on green energy. It’s no secret that cryptocurrency has a negative impact on the environment. You might choose Pera Wallet because Algorand is a green blockchain dedicated to energy efficiency.

, a noncustodial web3 wallet, offers several tools to help users manage their crypto assets and NFTs. Users can connect other hot and cold crypto wallets to their portfolio, and manage all their digital assets in one location. However, there’s a 0.5% swap fee for all networks.

A key feature of Zerion is its social aspect. Users can track assets, follow other users’ wallet activities and set up notifications for NFT and crypto drops.

 may look like a typical internet browser, it’s an excellent tool for helping users securely buy, sell and trade multiple tokens. Brave Wallet is built directly into the specialized secure browser to enhance security. You won’t need to worry about downloading extra browser extensions to access all the wallet’s features. If you want an extra layer of protection, Brave Wallet also connects to cold storage cryptocurrency wallets such as Trezor and Ledger. Plus, you’ll have quick access to live crypto market data, making the browser a good choice for active traders.

 is known for developing innovative web3 hardware wallets. As one of the first developers of cold crypto wallets, Trezor has always focused on adding new features. The Model T is an advanced hardware wallet that connects to your computer with a USB-C. The tiny device offers an easy-to-use touchscreen with PIN access, making it very quick. The Model T is also compatible with over 1,400 assets and has plenty of storage space, making it ideal for everyday trading and receiving GameFi rewards. 

The Model One, on the other hand, is a much cheaper alternative that is compatible with slightly below 1,300 assets. While it doesn’t have a touchscreen with PIN access, it offers a two-button pad that still allows you to access your wallet relatively quickly.

With all that said, whether you choose a hot or cold storage method, you should consider the following reasons to use web3 wallets.

Web3 wallets are designed to keep your assets as safe as possible. All web3 wallets are accessed using private keys or a seed phrase, which the user should keep somewhere safe offline. After being issued a new web3 wallet and a private key, no one else can access it without the key, not even the wallet’s developers.

If you have a cold wallet, the software service you use may have an additional layer of security to protect it from hackers and scammers. Hardware wallets are much harder to access because they have their own built-in security.

Both hot and cold web3 wallets are designed with the end user in mind. The best wallets can be set up in a few minutes, and have an easy-to-understand interface. Most wallet hardware or software companies include basic instructions on how to get started. After your new wallet is properly set up, you can deposit funds, or send and receive digital assets right away.

Ease of use is also critical when it comes to the future of DApps. For web3 wallets to become more mainstream, users need to be able to access all the features of their wallets with little or no technical knowledge. They also need to be able to set up their wallets and simply connect to their favorite game, purchase NFTs or store their cryptocurrency. To that end, users are able to receive GameFi rewards, trade assets or store NFTs. That’s why the most popular web3 wallets focus on ease of use and offer excellent support.

18 Best Web3 Wallets to Use as a Key to the Web3 Ecosystem

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards