Despite soaring coin prices in 2024, the crypto industry saw a lackluster increase in on-chain users across most relevant chains. According to a report by Flipside, a blockchain growth platform, there was a need for networks to provide both quantity and quality of on-chain activity to attract users and convert them into high-value contributors.
Coinbase’s layer-2 network, Base, experienced exponential growth in user count for 2024, with its monthly acquired users skyrocketing by 56 times from January. This growth continued through October when the crypto space saw a record 19.4 million newly acquired users, with Base contributing 13.7 million, almost eight times higher than the second-highest contributor, Polygon.
In addition to acquiring new users, Base also attracted 15.1 million super users who executed over 100 decentralized finance (DeFi) transactions, a 38.4% increase compared to the next chain, Ethereum, which saw 10.7 million super users. Ethereum also saw impressive growth in user activity, averaging 1.56 million acquired users per month, surpassing its layer-2 networks Arbitrum and Optimism.
The chain’s DeFi-related super users totaled 10.9 million, nearly double that of Arbitrum and Optimism’s combined total of 6.2 million and 1.8 million users respectively. However, Bitcoin’s user base barely grew, acquiring only 935,900 new users monthly despite its historic price surges and the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States.
Furthermore, there was a 19.2% uptick in acquired users during Bitcoin’s major rally in March, followed by a 28.5% drop during the post-U.S. election rally in November, indicating widespread speculative activity rather than significant new user onboarding. Overall, it seems that certain chains like Base and Ethereum were able to capitalize on the growing interest in cryptocurrency and provide quality on-chain experiences, resulting in substantial user growth.
However, Bitcoin’s lackluster user base expansion suggests that it may struggle to compete without addressing these issues moving forward.
Source
As per reported by cryptopotato.com
