From Tools to Ecosystem Gateway: The Power Reshuffle of Wallets and Exchanges

2026-01-09 09:18:14

【Chain News】The role of wallets is quietly undergoing a transformation. From the cold, key management tools of the Bitcoin era to the essential gateways for on-chain finance today, this shift has taken over a decade. The DeFi Summer marked a watershed moment—wallets suddenly shifted from low-frequency asset storage boxes to gateways that dApp users must pass through. Subsequently, the All-In-One wallet approach gradually became the market mainstream. Amidst the waves of inscriptions and Meme trends, these wallets validated their capabilities, holding more and more transaction pathways and traffic distribution rights.

But the tide is turning. The wealth effect of VC tokens is waning, new on-chain assets and high-yield opportunities are continuously spilling out, and users are no longer willing to stay long-term on centralized exchanges. This pressure is forcing exchanges to accelerate their on-chain strategies—moving toward embedded wallets—to extend compliance, fiat channels, and a large user base into the on-chain ecosystem.

Gate Web3’s exploration is quite representative. The on-chain transformation of CEXs is not simply copying the logic of non-custodial wallets, but rather, on the basis of protecting user asset sovereignty, tightly integrating the exchange’s account system, trading capabilities, and on-chain applications. The goal is straightforward: to keep assets longer and increase user lifetime value.

Ultimately, the entire industry is undergoing a functional restructuring. Financial capabilities that can be on-chain and modular are continuously flowing into wallets, while exchanges rely on on-chain integration and ecosystem binding to defend their eroding boundaries. This is not just a technological evolution but a slow reshaping of power and traffic.

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rugpull_ptsd

· 01-12 05:38

Honestly, I feel like the wallet has really turned things around now, from a gatekeeper to a landlord, now making trading profits to please others haha. The people at the exchange are panicking, if users hadn't moved to the chain, they probably would still be counting money. DeFi was definitely a dividing line back then, and thinking about it now, it's quite interesting. Wallets have mastered the traffic, but how long they can sustain it is uncertain; the next wave could bring a change again. It feels like power is being shuffled around; whoever captures the users becomes the boss. Now it's the wallet's turn.

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DeFiChef

· 01-10 16:49

Well said. After DeFi Summer, wallets indeed became the main players, but now it seems the tide has turned, and exchanges are starting to make a move again. Exchanges have too much capital, and this time they definitely won't let go easily. The traffic dividends held by wallets are almost exhausted, and it's time for exchanges to strike back. After this round of restructuring, small wallets might really become obsolete. It feels like a big fish eating a small fish scenario, and ultimately users will be pulled back in. The compliance addition of fiat channels—exchanges' move is indeed ruthless.

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ChainWanderingPoet

· 01-09 17:51

Wallets go from tools to gatekeepers, and exchanges also have to bow their heads... The power game in this round is quite interesting. --- The All-In-One wave definitely grabbed a lot of attention, but the real strength still depends on who holds the user's mind. --- Basically, exchanges can't sit still anymore; they have to actively engage on-chain, or they'll be sidelined. --- After DeFi Summer, the status of wallets skyrocketed. Now they might be pushed back to their original form by embedded solutions? Crypto is so unpredictable. --- Compliance and fiat channels are the real trump cards; no matter how advanced the technology is, they still have to listen to these two. --- It seems the golden age of wallets might really be over; ultimately, concentration will return to the hands of major players. --- Is the pressure of user outflow really that intense? Exchanges are also working hard to retain users.

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TooScaredToSell

· 01-09 09:46

To be honest, this wave of embedded wallets in exchanges feels like big fish eating small fish. Wallets have been impressive for a while, but this time it's probably risky. Wait, can compliance and fiat on-ramps really give exchanges such a big advantage? I also experienced pitfalls with the All-in-One approach, and now I still want to go back to professional wallets. It's basically a power game—whoever has more users wins. This logic and pattern, as the wealth effect diminishes, people start pushing onto the chain. Feels like it’s never-ending. No matter how strong the wallet is, it can't withstand the pressure from the exchange's scale.

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GasGrillMaster

· 01-09 09:43

Wallets are transforming from tools into gateways, while exchanges are counteracting with strategic positioning. This power struggle never ends. To put it simply, it's all about competing for user access points.

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SelfMadeRuggee

· 01-09 09:32

That's right, wallets are now holding the life-and-death tokens, but it seems the exchange's counterattack is coming soon. But the problem is, whose wallet experience is really user-friendly? It's still a mess right now. During DeFi Summer, wallets indeed took off. Now, it feels like the hype has cooled down. In terms of compliance, exchanges definitely have an advantage. Ordinary users are still afraid of the hassle. Wallet power restructuring? Basically, it's just mutual fighting, and in the end, users pay the price. Is the era of All-In-One coming to an end? I still find it hard to believe. This round, traffic will definitely shift towards exchanges. Are wallets panicking? Embedded wallets sound good, but I'm worried it's just another new trick to scam users. User outflow essentially means no more profits, everyone wants to escape, which is quite realistic. It's only a matter of time before exchanges get involved on-chain, but if they do a good job, it's no surprise.

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FOMOSapien

· 01-09 09:31

Wallet positioning from tool to entry point, exchanges are about to cause trouble again. Basically, it's a game of competing for user time and traffic. --- The All-In-One wallet indeed capitalized on the recent boom. Now exchanges are launching embedded countermeasures, and wallets will have to worry. --- It seems the ultimate winners are still the platforms that hold the users. As for wallets versus exchanges, it no longer matters. --- Users only realized when VC coins cooled down, which is a bit ironic. --- Speaking of which, the liquidity problem of DEXs still hasn't been solved. No matter how exchanges compete, the user experience is pretty much the same. --- The battle for on-chain financial entry points is essentially about who is more convenient, and who wins. --- The embedded wallet move is indeed brilliant. Exchanges directly transfer their user base onto the chain, and the advantages of wallets are being eroded.

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