MetaMask, a popular cryptocurrency wallet, has seen a significant increase in monthly active users, reaching over 30 million from 19 million in September 2023. This surge in users suggests a growing interest in non-custodial activities such as decentralized finance (DeFi) and non-fungible token (NFT) minting.
The rising number of MetaMask users seems to align with the recovery of Bitcoin and Ethereum prices in late Q3 2023 and throughout Q4 2023. Ethereum, the second-largest cryptocurrency by market cap, is currently trading around $3,000, with traders expecting further price gains due to ongoing network enhancements and the upcoming mainnet implementation of Dencun.
Decentralized finance activities have also seen a significant increase, with total value locked (TVL) rising nearly 2X from $40 billion to over $74 billion as of mid-February 2024. The number of DeFi and NFT active users is closely tied to crypto prices, with a peak in MetaMask users and activities seen when prices hit record highs in Q4 2021.
To protect its users, MetaMask has introduced a new Blockaid alert system designed to prevent fraud and enhance security for users engaged in various activities, including DeFi and gaming. Additionally, MetaMask has partnered with ConsenSys to launch a validator staking feature, allowing users to stake their ETH without needing to own nodes or manage technical complexities.
Overall, the increasing number of MetaMask users and the growth in decentralized finance activities suggest a positive trend in the broader crypto market. With ongoing network improvements and security measures in place, MetaMask users can expect continued growth and confidence in non-custodial activities like DeFi and NFT minting.
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