Despite the overall rise in cryptocurrency prices in 2024, the number of active users on various blockchains remained stagnant or even decreased for many networks. This issue was highlighted in a recent report from the blockchain growth platform Flipside, which revealed a need for networks to focus on increasing both quantity and quality of on-chain activity to attract and retain users.
One notable exception to this trend was Base, a layer-2 network launched by the popular American crypto exchange Coinbase. According to the report, Base experienced exponential growth in both user count and super users (those who execute over 100 decentralized finance transactions) throughout the year.
In fact, Base’s monthly acquired users increased by a remarkable 56 times from January to October 2024, reaching a record high of 19.4 million users – 8 times higher than the second-placing layer-2 network, Polygon. Another standout performer was Ethereum, which saw steady growth in its user base despite facing stiff competition from rival networks.
The second-largest crypto network averaged 1.56 million acquired users per month, surpassing its layer-2 counterparts Arbitrum and Optimism. Furthermore, Ethereum boasted an impressive 10.9 million DeFi-related super users – nearly double the number of super users on Arbitrum and more than five times those on Optimism.
However, it wasn’t all good news for the industry. Bitcoin’s user base barely grew during the year, with acquired users increasing by just 935,900 monthly despite significant price increases and the launch of spot Bitcoin ETFs in the US. Furthermore, there were signs of speculative activity among existing users rather than meaningful onboarding of new ones.
Overall, the Flipside report serves as a reminder of the challenges facing the crypto industry when it comes to attracting and retaining users. While there are clear success stories like Base and Ethereum, much work remains to be done if the sector hopes to achieve mainstream adoption.
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