TL;DR Breakdown:
- Ethereum blockchain company ConsenSys raises $200 million in funding.
- The company’s flagship software MetaMask wallet records 21 million monthly active users.
- ConsenSys is exploring plans to expand the wallet outside the ETH blockchain.
ConsenSys, the Ethereum-based blockchain company that developed MetaMask, reported that the popular crypto wallet has reached 21 million monthly active users. On Wednesday, the company also announced that it raised $200 million in funding from its partnership with HSBC, Coinbase Ventures, and other investors.
ConsenSys began as an Ethereum incubator, with MetaMask being its flagship software product. The wallet recorded 5 million active users in April. The massive growth of the entire crypto market in the fourth quarter of this year, along with the wider adoption of NFTs, DeFi, and blockchain gaming helped the wallet to gain a 420% increase in just over 6 months.
Why is MetaMask becoming popular?
MetaMask received over 10 million new users in the just the last 3 months. So, Q4 has been really good for this Ethereum wallet. This is mostly due to the wider adoption of Web3 applications. The wallet allows users to trade ETH and erc20 tokens in real-time across the blockchain-based gaming platforms, NFT marketplaces, metaverse applications, and DAOs (Decentralized Autonomous Organizations).
With the growing adoption of metaverse applications, NFTs, and play-to-earn crypto games like Axie and Decentraland, MetaMask users will only continue to grow as it remains one of the best and easiest platforms for trading ETH-based tokens. Binance Smart Chain has also announced a $1 billion funding to increase its features and users.
So, applications that are adapting to the wider blockchain networks such as BSC, Polygon, and Solana will fiercely compete against MetaMask in the future.
However, ConsenSys has indicated that it will continue to explore opportunities for expanding beyond the Ethereum blockchain. The new $200 million funding round will be utilized to upgrade MetaMask and find newer ways to engage with the wider crypto market. The company is currently valued at $3.2 billion.
