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Despite the DeFi and NFT booms, demand for noncustodial wallets remains high. MetaMask has benefited the most, with active monthly users increasing 19-fold in just over a year.
MetaMask, an Ethereum wallet and browser plugin, reached a new milestone in August when its monthly active userbase surpassed 10 million for the first time, indicating the growing demand for DeFi assets.
MetaMask attributed its quick growth to a number of causes, including the rapid acceptance of Ethereum smart contract technology, the continuous expansion of DeFi protocols, and the successful debut of their token swap solution. The nonfungible token growth, according to the business, has also attracted additional users to its system.
According to reports, MetaMask reached one million monthly active users in October 2020, up from 545,000 in July of the same year. Much of that rise was attributable to the so-called “DeFi Summer,” which raced across the crypto markets in mid-2020. Despite signs of slowing later in the year, DeFi remains one of the hottest segments of the bitcoin market.
At the time of writing, the DeFi ecosystem had locked in more than $155 billion in total value. Total value locked (TVL) refers to the assets that are currently staked on a certain DeFi protocol. As previously reported, Benqi’s TVL surpassed $1 billion less than a week after its inception.
DeFi communities appear to be developing on other chains in addition to Ethereum. Binance Smart Chain and Polygon have seen significant growth in recent months as a result of decreased costs and increased efficiency.
Simultaneously, hackers and other harmful actors continue to attack decentralised finance technologies. Cream Finance, a DeFi lending protocol, was the most recently attacked, with hackers stealing roughly $19 million from the network earlier this week. xToken, another DeFi project, just experienced its second significant exploit in four months.