The cryptocurrency industry had an incredible year in 2024, marked by rising coin prices and increasing adoption. However, when it comes to on-chain activity, not all networks could keep up with the pace. According to a recent report by Flipside, there’s still room for improvement when it comes to attracting and retaining users.
The report found that while some chains like Base saw tremendous growth in both user count and super users, others like Bitcoin struggled to maintain their numbers or even attract new users throughout the year. Specifically, Base’s monthly acquired users grew by a whopping 56 times this year alone, reaching a record high of 19.4 million in October.
This is largely due to its strong performance in DeFi transactions, with 15.1 million super users executing over 100 such transactions each month – more than double the number seen on Ethereum. Ethereum also fared well in terms of user growth, particularly when compared to its layer-2 networks Arbitrum and Optimism.
The second-largest crypto network averaged 1.56 million acquired users per month and had 10.9 million DeFi-related super users – significantly higher than its competitors’. Institutional adoption and the listing of several new cryptocurrencies as “assets under consideration” by Grayscale may have played a role in driving this growth.
Interestingly, while Bitcoin’s price hit historic highs and saw increased trading volume, its user base only grew by 935,900 monthly acquired users – a far cry from the numbers seen on other chains. This suggests that much of the activity surrounding Bitcoin during this period may have been driven by speculation rather than genuine interest from new users.
Overall, the findings highlight both the opportunities and challenges facing different cryptocurrency networks in terms of attracting and retaining users. As the industry continues to evolve, it will be interesting to see how these trends shape the future of digital assets.
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