MetaMask, the must-have extension for cryptocurrency users, often arouses curiosity as to how it ensures its income. How MetaMask does he ensure an ever-increasing windfall of income?
Metamask, the web extension that has become a Web3 giant
Created by ConsenSys in 2016, MetaMask took a long time to establish itself on the market. Until 2019, MetaMask was exclusively available asbrowser extension, for Chrome and Firefox. At that time (not so long ago), making transfers between blockchains required a long and perilous process: the loss of user funds between platforms was then common. If MetaMask has not completely resolved all these problems (even becoming the preferred target of hackers), it will have greatly contributed to the opening of the blockchain to the general public.
It was from 2019 that the wallet really became popular, helped by the growth of Binance Smart Chain and the phenomenon of airdrops. A year later, it made a big breakthrough among crypto enthusiasts by reaching one million users. Above all, MetaMask has effectively responded to the growing need for a reliable tool to navigate the Web3 jungle. Today, the service can count on an average of 20 million users each month. It now offers a service of swapa native DEX, as well as mobile applications optimized for iOS and Android since 2020. Enough to attract more and more customers, and make it one of the major levers for the adoption of blockchain by the general public.
$252 million in profits
Historically, digital wallets are open source. By definition, this mode of operation does not offer the possibility of remunerating developers. Creating a portfolio remains 100% free. But MetaMask seems to have found the right formula. By offering a particularly simple and ergonomic interface, it has long-term facilitated the holding and transfer of cryptocurrencies. Above all, its great strength lies in its ability to offer good liquidity on a wide range of cryptocurrencies.
Therefore, asking for compensation in exchange for this service seems acceptable to most crypto-enthusiasts. These transaction fees, of the order of 0.875%, provide him with his main source of income. While these “small” commissions brought back to the American company the trifle of $252 million in 2022. If the figures for 2023 are not yet known, the profits of the Consensys subsidiary should automatically increase. Even more so if the price of bitcoin starts to rise again.
By democratizing digital wallet ownership interoperable, MetaMask provides a service to the entire cryptoasset ecosystem. Coinbase, Binance, Kucoin, or Opensea: all benefit from the functionalities and ergonomics offered by the web extension.
MetaMask thus broadens its influence by forging strategic partnerships with these cryptocurrency players. Collaborations are not only limited to issues of visibility, but also generate financial returns through “mutually beneficial” arrangements. The content of these partnerships is difficult to access, even if we can easily imagine that they are largely profitable. In 2023, MetaMask has even moved closer to a historic leader in online payments: Paypal.
A lesser-known component, the MetaMask Marketplace, offers users additional features, including liquid staking. Although optional, these transactions contribute to diversifying MetaMask’s sources of income. The extension web 3.0 aims with this service to stand out with a complete offer. Indeed, the influx of new clients from DeFi allows the portfolio to increase its volumes, and therefore, its profits.
MetaMask maintains a pragmatic approach to ensure its economic viability. Transaction fees, its strategic partnerships and the Marketplace provide it with a growing revenue stream. By becoming essential, ConsenSys has gained trust within the crypto community thanks to a wallet adapted to the complex world of cryptocurrency. Still, competitors are on the lookout, in a market that continues to grow, as is the case with TrustWallet or Ledger who also offer their wallet digital.
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