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This year, the crypto industry has witnessed remarkable growth amid rising coin prices. However, a stark contrast can be seen when it comes to on-chain users across most relevant chains. A recent report by blockchain growth platform Flipside sheds light on this issue.
The report highlights that only Base, a layer-2 network launched by Coinbase, experienced exponential growth in user count for 2024. Other networks, including Bitcoin and some Ethereum-based layer-2 chains, struggled to maintain their growth or even attract new users throughout the year.
Interestingly, Flipside’s analysis revealed that Base’s monthly acquired users skyrocketed by 56 times this year, despite starting slow in January. In October, the crypto space saw a record-breaking 19.4 million newly acquired users, with Base contributing a staggering 13.7 million of these, which is roughly eight times more than the second-highest contributor, Polygon.
Furthermore, during the course of this year, Base also attracted an astonishing 15.1 million super users, who executed over 100 decentralized finance (DeFi) transactions. This growth outpaced that of the next chain, Ethereum, which saw a more modest 10.7 million super users.
According to Flipside, institutional acceptance of cryptocurrencies has likely driven some of this growth across certain chains. Additionally, significant developments such as Grayscale listing several new cryptocurrencies as “assets under consideration” have also contributed to this growth.
On the other hand, Bitcoin’s acquired users grew by a relatively paltry 935,900 monthly during 2024, despite its historic surge above the $100,000 level and the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. The report notes that the network saw a significant increase in acquired users of 19.2% in March amid bitcoin’s major rally, but unfortunately, this growth was short-lived as it dropped by an alarming 28.5% during the post-U.S. election rally in November.
The report suggests that Bitcoin’s stagnant user base indicates widespread speculative activity among existing Bitcoin users rather than significant new onboarding of users.
Lastly, Uniswap, a decentralized exchange, continued to maintain and expand its dominance across major chains, particularly on Base and Ethereum.
Overall, the findings from Flipside’s analysis paint a concerning picture regarding the growth of on-chain users in 2024. It appears that only a select few networks have managed to attract new users, while others, such as Bitcoin, seem to be stuck in a rut.
Source: cryptopotato.com
