The crypto industry had a remarkable year in 2024, with rising coin prices driving growth across many chains. However, on-chain activity didn’t quite match this pace for most networks. According to a report from Flipside shared exclusively with us at CryptoPotato, there was a clear need for quality and quantity on-chain activity to attract users and retain them as valuable contributors.
One standout performer in terms of user growth was Base, the layer-2 network launched by Coinbase, America’s largest crypto exchange. The platform saw its monthly acquired users skyrocket by 56 times this year alone, reaching an all-time high of 19.4 million in October. Interestingly, Base managed to achieve this feat without experiencing much growth in earlier months like January.
In terms of super users – those who execute over 100 decentralized finance (DeFi) transactions – Base also led the pack, attracting 15.1 million super users compared to Ethereum’s 10.7 million. This growth rate of 38.4% was significantly higher than that of Ethereum and its layer-2 competitors.
Ethereum itself had a strong showing in terms of user activity, particularly when compared to its layer-2 competitors Arbitrum and Optimism. According to Flipside’s findings, Ethereum’s average monthly acquired users stood at 1.56 million, significantly outperforming both Arbitrum and Optimism. Additionally, Ethereum’s DeFi-related super user count of 10.9 million dwarfed those of its layer-2 competitors.
While some chains like Bitcoin did manage to see modest growth in their acquired user base, with 935,900 additional users each month, it lagged behind many others in terms of on-chain activity. This suggests that much of Bitcoin’s growth may have been driven by speculation rather than genuine user adoption.
Despite these trends, it’s important to note that institutional acceptance of cryptocurrencies and major developments like Grayscale listing several new coins as “assets under consideration” likely played a role in driving growth across certain chains. Overall, the findings from Flipside’s report highlight the crucial importance of offering both quantity and quality on-chain activity to attract and retain valuable users within the crypto ecosystem.
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