A Leading DeFi Bull Indicator? MetaMask Registers Over 30 Million In 5 Months

Bitbuy
MetaMask
fiverr


MetaMask monthly active users (MAUs) currently stand at over 30 million, a near 2X surge from around 19 million recorded in September 2023.  This uptick could be a huge positive indicator of growing activity around non-custodial activities, including decentralized finance (DeFi) and non-fungible token (NFT) minting.

Is DeFi Ready To Blow? MetaMask Records More Users

A crypto commentator on X, citing Blockworks, took note of the exploding MetaMask numbers, hinting at renewed momentum in the broader crypto market, especially in compatible networks, primarily Ethereum.

It should be noted that the rising number of MetaMask users coincides with the recovery of Bitcoin and Ethereum prices from late Q3 2023 throughout Q4 2023 to spot rates.

Ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView

Ethereum, the second largest crypto by market cap, trades at around $3,000 when writing. Traders and supporters are optimistic, expecting more price gains in the coming sessions. Confidence primarily stems from ongoing network enhancements, including the planned mainnet implementation of Dencun.

okex

Others include the recovery in decentralized finance (DeFi) activities, as seen from the nearly 2X rise in total value locked (TVL) from around $40 billion to more than $74 billion as of mid-February 2024, based on DeFiLlama data.

DeFi TVL rising | Source: DeFiLlama
DeFi TVL rising | Source: DeFiLlama

The number of DeFi and NFT active users remains sensitive to prices. When crypto prices peaked around Q4 2021, MetaMask users soared to record highs. There was also an explosion in DeFi and NFT activities on various platforms compatible with MetaMask.

Since the wallet is non-custodial, allowing users to control assets directly, the surge can lead to renewed market confidence and possibly more price gains.

Fraud Alert System And ETH Staking

Beyond user growth, MetaMask took proactive steps to protect users by launching a new Blockaid alert system. Initially launched in October for trials, the feature, MetaMask said, is now open for all extension users engaged in various activities, including DeFi, gaming, and more. MetaMask, in a post on X, said they plan to launch the feature to mobile users in the coming days. 

Earlier this year, ConsenSys partnered with MetaMask to launch a validator staking feature. Aimed to compete with existing providers, including Lido Finance and other liquidity staking providers, the service allows users to stake their ETH.

However, like what competitors offer, the service won’t require users to own nodes or manage the technical complexities involved. This staking feature will be provided through Consensys Staking, permitting users to lock up at least 32 ETH.

Feature image from Canva, chart from TradingView



Source link

Binance

Be the first to comment

Leave a Reply

Your email address will not be published.


*