Business Operations Business Models

How Does MetaMask Make Money (Business and Revenue Model)

The MetaMask business model

How Does MetaMask Make Money?
Here’s what you should know:
  • What is MetaMask, and how does MetaMask work?
  • How does MetaMask make money?
  • Service Fees (Swap Fees)
  • MetaMask Institutional
  • Selling Merchandise
  • MetaMask’s profit and revenue
  • What is the MetaMask business and revenue model?
  • MetaMask’s funding and valuation

How does MetaMask make money if it’s free to use? Here is a full, in-depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the MetaMask business model, their profit and revenue, and how MetaMask works.

What is MetaMask, and how does MetaMask work?

MetaMask is a cryptocurrency wallet that allows users to manage their digital assets through the browser extension or mobile app.

Developed by ConsenSys in 2016, MetaMask now has over 30 million monthly active users (MAUs) making it the number one most used non-custodial crypto wallet in the world.

How MetaMask works is: Before one can start using MetaMask, they must first download and install the MetaMask app and or browser extension. Once downloaded, users can create a new MetaMask wallet by clicking “Create a Wallet” and then be prompted to create a new password and write down the 12 word secret recovery phrase.

Once you have the secret recovery phrase in a safe place off of all devices (written on paper, not in digital form), you can begin to send, receive, and swap digital assets. More on that, here.

Some of MetaMask’s competitors include Coinbase Wallet, Trust Wallet, Ledger, Trezor, and other cryptocurrency wallets.

MetaMask App in Apple App Store | MetaMask Business Model | How Does MetaMask Make Money? | How Does MetaMask Work?
Source: Apple App Store | MetaMask

How does MetaMask make money?

According to ConsenSys, developer of MetaMask, the company has over 30 million monthly active users (MAUs). So how does MetaMask make money off of all those users if the service they offer is free?

Below is a breakdown of how much money MetaMask makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how MetaMask makes money (in 2022):

MetaMask has a revenue model that makes money in three (3) ways – service fees (swap fees), MetaMask Institutional, and selling merchandise.

#1. Service Fees (Swap Fees)

MetaMask makes the majority of its money through service fees (swap fees).

The way MetaMask fees work is: Every time a MetaMask user makes a transaction using the built-in MetaMask Swap within the MM wallet, MetaMask charges a fee. This fee, according to MetaMask, is a dynamic fee that ranges between 0.3% to 0.875% and automatically factors it into each quote.

MetaMask Fees:

  • 0.3% to 0.875% of every transaction made using MetaMask Swap
MetaMask Fees | MetaMask Business Model | How Does MetaMask Make Money? | How Does MetaMask Work?
Source: MetaMask

Note: MetaMask only collects a swap fee if the MM user uses the built-in Swap within the MetaMask wallet. But if a user swaps their digital assets by connecting their MM wallet to a decentralized exchange (DEX) such as Uniswap, SushiSwap, 1inch, etc — MetaMask does not collect any fee.

#2. MetaMask Institutional

MetaMask also offers MetaMask Institutional (MMI), an “institution compliant extension” of the MetaMask wallet tailored for the hedge funds, crypto funds, financial institutions, market makers, and the like.

MMI integration gives these partnering custodian platforms and their institutional users a gateway into the DeFi and Web3 world.

MetaMask Institutional | MetaMask Business Model | How Does MetaMask Make Money? | How Does MetaMask Work?
Source: MetaMask Institutional

Note: MetaMask does not disclose how much MetaMask Institutional (MMI) costs for its partners to integrate. All inquries of MMI must be filled out through a “Get in touch” form via their website.

#3. Selling Merchandise

Although it may be a minuscule amount in comparison to MetaMask’s total revenue, it’s still worth noting that MetaMask also sells its own merchandise through its online store, Swag Shop.

Items, such as branded MetaMask gear and accessories, ranging in price from $15.49 to $41.99.

Source: MetaMask

MetaMask’s profit and revenue

MetaMask has a reported revenue of $200+ million in 2021.

Note: Because ConsenSys Inc. (developer of MetaMask) is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the MetaMask business and revenue model?

MetaMask makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Fee for service(FFS) business model
  • Business-to-business (B2B) revenue model
  • Transaction based business model

MetaMask’s funding and valuation

According to a ConsenSys Press Release, MetaMask has raised more than $450 million giving it a valuation of over $7 billion as of March 2022.