The crypto industry saw tremendous growth in 2024, particularly with rising coin prices. However, this wasn’t reflected in the number of on-chain users across most relevant chains, according to a report by blockchain growth platform Flipside. The report emphasizes the importance of offering both quantity and quality on-chain activity to attract users and turn them into valuable contributors.
While some chains struggled to maintain their growth or attract new users, others like Base, experienced exponential growth. Base’s monthly acquired users skyrocketed by 56 times this year, reaching a record 19.4 million in October. This growth can be attributed to the fact that it started slow in January.
Interestingly, Base contributed 13.7 million new users, which is almost eight times higher than the second-highest contributor, Polygon. Additionally, Base attracted 15.1 million super users who executed over 100 decentralized finance (DeFi) transactions, which is 38.4% more than the next chain, Ethereum.
Ethereum also saw impressive growth in its user activity, averaging 1.56 million acquired users per month. Its DeFi-related super users amounted to 10.9 million, crushing its layer-2 networks Arbitrum and Optimism’s respective 6.2 million and 1.8 million user counts. However, Bitcoin’s acquired users only grew by 935,900 monthly, despite its historic surge and the launch of spot Bitcoin ETFs.
This suggests widespread speculative activity among existing Bitcoin users rather than significant new user onboarding. In conclusion, while the crypto industry continues to grow, it’s crucial for networks to focus on attracting both quantity and quality on-chain activity to retain and grow their user base.
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