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The total addressable market is huge so I think there is still a lot of room for interesting business models in wallets, will all make it? Absolutely not, so far wallets can offer
  • LSP services at a fee
  • CoinJoin services at a fee
  • Atomic swaps between BTC and L2s at a fee
  • Subscriptions for multi-sig
  • Fees on synthetic products like backed USD
I think its all about your churn and how long you can retain a user to keep netting fees from their use of services