Although cryptocurrencies are experiencing a surge in popularity, the number of crypto ATMs worldwide has been on a steady decline in 2023.
Data from Coin Atm Radar confirms that over 3,600 crypto ATMs were disabled in March alone, and in the first quarter of 2023, a staggering 5,500 machines stopped working.
Currently, there are only 33,727 cryptomats in operation globally, representing a 13.91% decrease in the number of ATMs since the end of 2022.
While there was a minor dip in installations in January and February, with around 1,587 and 275 devices being disconnected respectively, the drastic reduction in the number of installed crypto ATMs has caught the attention of industry analysts.
Since the installation of the first crypto ATM in Vancouver, Canada, in October 2013, the number of these machines has steadily grown worldwide.
In the past two years, from December 2020 to January 2022, the average number of installed cryptomats exceeded 1,500 monthly.
However, the sudden drop in the number of installations may be attributed to the prolonged bear market, revenue losses, and political tensions between nations, according to experts.
Interestingly, in March, the manufacturer of cryptomats, General Bytes, made headlines by offering refunds to users affected by hackers who gained unauthorized access to customers’ hot wallets.
Meanwhile, in the US, law enforcement agencies seized 18 crypto ATMs purchased with money fraudulently obtained from the state from Coindawg LLC in March.