The crypto world has seen tremendous growth in 2024, particularly with rising coin prices. However, when it comes to on-chain users across various networks, the situation isn’t as rosy. According to a recent report by Flipside, there’s a clear need for networks to offer both quantity and quality of on-chain activity to attract users and turn them into valuable contributors.
While some chains like Bitcoin struggled to maintain their growth or attract new users throughout the year, others like Base and Ethereum took the lead. Base, a layer-2 network launched by Coinbase, experienced exponential growth in user count in 2024. The number of its newly acquired users surged to a record high of 19.4 million in October, with 13.7 million of those coming from Base alone.
In terms of super users who executed over 100 decentralized finance (DeFi) transactions, Base had a whopping 15.1 million – 38.4% more than Ethereum, which had 10.7 million. However, when it came to average acquired users per month, Ethereum still beat out Base with 1.56 million compared to Base’s 1.2 million.
Interestingly, the growing institutional acceptance of cryptocurrencies and notable developments like Grayscale listing several new coins as “assets under consideration” may have played a role in driving this growth across certain chains. Despite Bitcoin’s historic price surges and the launch of spot Bitcoin ETFs in the US, its acquired users only grew by 935,900 monthly – a figure that dropped 28.5% during the post-US election rally in November.
This suggests widespread speculative activity among existing Bitcoin users rather than significant new user onboarding. Overall, the report highlights the importance of offering both quantity and quality of on-chain activity to attract and retain valuable users in the competitive world of cryptocurrency.
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