The crypto industry saw remarkable growth in 2024, particularly in terms of rising coin prices. However, this growth did not translate to a significant increase in on-chain users across most relevant chains. A report by the blockchain growth platform Flipside revealed that networks need to focus on offering both quantity and quality on-chain activity to attract users and convert them into high-value contributors.
Despite the challenges faced by some chains, there were notable success stories. For instance, the layer-2 network launched by Coinbase, called Base, experienced exponential growth in user count for 2024. Other chains like Bitcoin and some Ethereum-based layer-2 chains struggled to maintain their growth or even attract new users throughout the year.
Flipside’s report highlighted that Base had one of the most impressive growth stories of the year. Its monthly acquired users skyrocketed by 56 times from January, reaching a record 19.4 million users in October. What’s more, Base contributed 13.7 million of these new users, which was almost eight times higher than the second-highest-contributing chain, Polygon.
In addition to acquiring new users, Base also saw impressive growth in its number of super users executing over 100 decentralized finance (DeFi) transactions. By the end of the year, it had 15.1 million super users, which was 38.4% higher than the next chain, Ethereum, which had 10.7 million super users.
Ethereum also had a strong showing, particularly when it came to DeFi activity. It averaged 1.56 million acquired users per month, surpassing its layer-2 networks Arbitrum and Optimism. Furthermore, Ethereum had 10.9 million DeFi-related super users, which was significantly higher than Arbitrum and Optimism’s respective 6.2 million and 1.8 million user counts.
However, Bitcoin’s user base barely grew in comparison. Despite bitcoin’s historic price rally and the launch of spot Bitcoin ETFs in the U.S., the number of acquired users only increased by 935,900 monthly. Furthermore, there was a 28.5% drop in acquired users during the post-U.S. election rally in November.
Overall, the report suggests that there is still room for improvement when it comes to attracting and retaining users on various blockchains. While some chains like Base and Ethereum saw impressive growth, others struggled to keep up. It will be interesting to see how the industry continues to evolve and adapt to meet the needs of both new and existing users.
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