The cryptocurrency industry has seen tremendous growth in 2024, with rising coin prices fueling excitement across the board. However, when it comes to on-chain activity, there seems to be room for improvement. According to a recent report by Flipside, many relevant chains are struggling to maintain or attract new users beyond their initial surges.
While some networks like Bitcoin and certain Ethereum-based layer-2 chains have faced challenges in this regard, others like Base have seen extraordinary growth. Flipside’s data reveals that Base’s monthly acquired users increased by an astonishing 56 times this year alone, reaching a record-high of 19.4 million in October.
Furthermore, they attracted a substantial number of super users engaged in decentralized finance (DeFi) transactions, totaling 15.1 million – nearly eight times that of the second-ranked chain, Polygon. Interestingly, the success of Base can partly be attributed to increased institutional adoption of cryptocurrencies and positive developments like Grayscale listing several new coins as “assets under consideration.” These factors may have played a role in driving growth across certain chains.
However, it’s worth noting that Bitcoin’s on-chain activity did not see the same levels of expansion. While Bitcoin’s acquired users did grow by 935,900 monthly, this number pales in comparison to the growth witnessed on other chains. Furthermore, the report suggests that much of this growth can be attributed to speculative activity rather than genuine new user onboarding.
In conclusion, while the overall cryptocurrency industry continues to thrive, there remains room for improvement when it comes to attracting and retaining quality on-chain users across various relevant chains. Networks like Base have shown promising results in this regard, offering both quantity and quality of on-chain activity to attract and retain valuable contributors.
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