The crypto industry saw massive growth in 2024 due to rising coin prices, but surprisingly, there wasn’t much growth when it came to on-chain users across most relevant chains. A report by Flipside reveals that networks need to focus on offering both quantity and quality on-chain activity to attract users and convert them into high-value contributors.
While some chains struggled to maintain their growth or even attract new users throughout the year, others managed to experience remarkable growth. For instance, Base – a layer-2 network launched by the largest American crypto exchange Coinbase – had exponential growth in user count for 2024. Other chains like Bitcoin and some Ethereum-based layer-2 chains struggled with user acquisition during this period.
Despite these challenges, there were a few bright spots in terms of user growth. According to Flipside’s report shared exclusively with us at CryptoPotato, Base saw tremendous growth in its monthly acquired users, surging by 56 times from January to October 2024. This resulted in a record 19.4 million newly acquired users, with 13.7 million coming from Base alone – nearly eight times higher than the second-highest contributor, Polygon.
In addition to acquiring new users, Base also managed to attract a significant number of super users who executed over 100 decentralized finance (DeFi) transactions each month. By the end of the year, they had amassed an impressive 15.1 million super users, which was 38.4% higher than the next chain, Ethereum, which saw 10.7 million super users.
Ethereum itself saw remarkable growth in terms of user activity during the year. Despite facing stiff competition from layer-2 solutions like Arbitrum and Optimism, Ethereum managed to average 1.56 million acquired users per month, surpassing both Arbitrum and Optimism. Additionally, they had 10.9 million DeFi-related super users by the end of the year, significantly higher than Arbitrum’s 6.2 million and Optimism’s 1.8 million.
Interestingly, Bitcoin’s user growth was rather modest compared to other chains. Despite experiencing a historic surge above the $100,000 level and the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, Bitcoin’s acquired users grew by just 935,900 monthly during the year. However, there were some fluctuations in user acquisition rates; for instance, there was a 19.2% uptick in acquired users during Bitcoin’s major rally in March.
In conclusion, while some chains managed to experience remarkable growth in terms of user acquisition and engagement during 2024, others struggled to keep up. As we move forward into the future of blockchain technology, it will be interesting to see how networks continue to innovate and adapt to meet the evolving needs of their users.
Source
As per reported by cryptopotato.com
