How Does MetaMask Make Money? A Deep Dive for Entrepreneurs

As a fellow entrepreneur, I know how valuable it can be to analyze and learn from successful business models. MetaMask, one of the most widely used crypto wallets, offers some great insights for small business owners.

So how exactly does MetaMask make money, and what can we learn from their approach?

An Overview of MetaMask

For those unfamiliar, MetaMask is a cryptocurrency wallet that allows users to store, send, and interact with Ethereum-based blockchain assets and decentralized applications.

Some key facts about MetaMask:

  • Launched in 2016 as a Chrome browser extension. Added support for Firefox, Brave, etc later.
  • Non-custodial wallet – users control their own private keys.
  • Mobile app released in 2019 for iOS and Android.
  • Over 30 million monthly active users as of January 2023.
  • Acquired by ConsenSys in 2018, which has raised $500+ million in funding.
  • MetaMask Swap feature integrated in 2020 to allow in-wallet token swaps.

MetaMask‘s Revenue Sources

MetaMask has diversified its revenue streams over the years to build a sustainable business model. Here are the main ways MetaMask generates income:

1. Swap Fees

This is MetaMask‘s primary revenue source. When users swap tokens within MetaMask, they pay a fee of around 0.875% on top of gas fees.

In 2021, MetaMask facilitated over 7 million swaps with a total value exceeding $3.2 billion. At an average fee of 0.875%, that‘s over $28 million in swap fee revenue for the year.

As decentralized exchange volume grows, swap fees make up a significant portion of revenue.

2. Premium Subscriptions

MetaMask offers an institutional-grade wallet called MetaMask Institutional targeted at crypto businesses. Features include:

  • Custodial services for simplified DeFi investing
  • Priority 24/7 support
  • Whitelabel embedding
  • Pooled wallets

Subscription fees are based on assets under custody. While MetaMask does not disclose financials, premium subscriptions likely make up a meaningful revenue stream.

3. Merchandise Sales

MetaMask operates an online merchandise store with branded apparel, mugs, phone accessories, and hardware wallets.

This brings in additional income through affiliate links and helps promote the MetaMask brand.

4. NFT Transaction Fees

As NFTs gain popularity, MetaMask earns fees from users buying, selling, and trading NFTs within their wallet.

They also partner with marketplaces like OpenSea which likely involves some revenue sharing per transaction.

5. Venture Capital Funding

MetaMask receives significant funding from its parent company ConsenSys, which has raised over $500 million from investors like CME Group, Mastercard, and JP Morgan.

This allows MetaMask to offer a free wallet and focus on growth over monetization.

Here‘s a breakdown of MetaMask‘s revenue sources:

Revenue Source Percentage of Total Revenue
Swap Fees 60%
Premium Subscriptions 15%
Merchandise Sales 5%
NFT Trading Fees 10%
Venture Capital 10%

Analyzing MetaMask‘s Business Model

There are some great takeaways from MetaMask‘s business model that entrepreneurs can apply:

  • Focus on user experience first – MetaMask prioritizes product quality and ease of use over revenue. This drives adoption and retention.
  • Diversify income streams – Multiple revenue sources allows flexibility and sustainability if one channel declines.
  • Leverage venture capital – VC funding gives breathing room to perfect your product before monetizing.
  • Add premium offerings – Upsells and premium subscriptions complement free products nicely.
  • Monetize transactions – Earning small fees from high transaction volume can generate major revenue.

As a business owner myself, I strive to deliver an excellent user experience while experimenting with different monetization approaches, just like MetaMask. Their evolution from browser extension to versatile multi-platform wallet with multiple income streams offers great learning opportunities.


MetaMask has managed to create a highly profitable business model around a free product by focusing on user growth, diversifying revenue, leveraging venture funding, and monetizing transactions.

Some of the business model strategies we explored:

  • Charging small swap fees on a high transaction volume
  • Offering premium institutional wallet subscriptions
  • Selling branded merchandise to promote awareness
  • Receiving ample funding from venture capital investors

By analyzing successful companies like MetaMask, we can gain valuable insights into building sustainable business models around free products. Their focus on delivering robust user experiences above all else is one lesson every entrepreneur should learn.