December 20, 2024

The cryptocurrency industry saw a transformative year in 2024, marked by rapid user acquisition and changing ecosystem dynamics.

A new report from Flipside highlights the massive growth in user engagement, particularly on Base and Ethereum, while decentralized exchanges (DEXs) and new blockchain projects are reshaping the competitive market.

On-chain growth and emerging market dynamics

Base, a blockchain platform developed by Coinbase, led the market in 2024 with 13.7 million new users in October alone. This surge put Base as the fastest-growing blockchain, surpassing Ethereum with a steady average of 1.56 million new users per month. By comparison, Bitcoin’s growth has lagged despite hitting $100,000, indicating speculative interest rather than new user acquisition.

Ethereum’s stability as a leader in user acquisition supports its solid position, but Base’s rapid growth demonstrates the potential for newer chains to disrupt the ecosystem. Polygon has also seen participation, leveraging decentralized activities to expand its user base.

Base also attracted 15.1 million superusers — those with more than 100 transactions — surpassing even Ethereum and Polygon. This achievement reflects Base’s ability to maintain active engagement, making it a standout platform. Polygon, by contrast, has excelled at diversifying its activities and maintaining high transaction volumes across gaming and non-financial use cases.

Uniswap has strengthened its dominance in the decentralized exchange space, capturing 91.3% of user activity acquired on Base. On Ethereum, Uniswap’s share has also grown, cementing its position as a market leader. Trader Joe’s has maintained its lead on Avalanche, supported by features like Auto-Pools and multi-chain capabilities.

These shifts illustrate the growing consolidation of DEX activity around major players, highlighting a mature market. However, newer chains face the challenge of balancing innovation with user retention.

New blockchain networks like Aliu have shown promising growth but face hurdles in maintaining user engagement. In comparison, Base has emerged as a model for expanding engagement through features and partnerships. These new ecosystems must expand beyond trading to compete effectively in the broader crypto space.

Macro trends boost corporate confidence

According to Flipside, regulatory clarity has played a crucial role in shaping the crypto space in 2024. The EU’s Markets in Crypto-Assets (MiCA) regulation has boosted institutional confidence, encouraging the launch of ETFs and increasing adoption. These developments have supported continued user growth across leading chains.

As the cryptocurrency market matures, new trends such as GameFi and AI integration are expected to drive adoption. These innovations can address the challenges of scalability and data management, opening up opportunities for broader user engagement.

“Behind the headlines of record user growth lies a deeper challenge: building ecosystems that create meaningful, lasting engagement, not just fleeting speculation,” the report states. “In short, most blockchains are still just scratching the surface when it comes to turning everyday users into high-value contributors.”

Flipside’s report highlights a pivotal year for crypto, as established platforms compete with emerging ecosystems. The future will depend on how chains balance innovation, user retention, and regulatory adaptation to maintain momentum into 2025.

With platforms like Base leading the way and Ethereum establishing its dominance, the competition for user activity and engagement is far from over.