The cryptocurrency landscape in 2024 has been marked by dramatic price increases, yet surprisingly, the growth in on-chain users has not mirrored this momentum. A deep dive into Flipside’s recent report on on-chain users reveals critical insights into the dynamics at play in various blockchain networks. While some chains, particularly Base, have shown exponential user growth, others have struggled to leverage the market’s bullish sentiment for lasting user engagement.
Remarkably, the layer-2 network Base, launched by Coinbase, has outperformed all other chains in terms of new user acquisition. Flipside’s report highlights that Base saw an astonishing 56-fold increase in its user count in 2024, directly engaging approximately 13.7 million of the 19.4 million newly acquired users across the entire crypto ecosystem by October. This significant boost can be attributed to both its effective onboarding strategies and the growing appetite for decentralized finance (DeFi). Super users on Base, defined as those executing over 100 DeFi transactions, reached 15.1 million—a staggering 38.4% increase over Ethereum, traditionally a stalwart in user activity.
While Base made headlines with its explosive growth, Ethereum also showcased its ability to attract users in a competitive landscape. With an average of 1.56 million new users per month, Ethereum solidified its position as a decentralized platform, boasting a total of 10.9 million super users. The fact that Ethereum outperformed its layer-2 solutions like Arbitrum and Optimism indicates that the foundational network remains a primary destination for decentralized applications and user engagement. It seems that institutional buy-in and regulatory developments have created a conducive environment for these platforms.
In stark contrast, Bitcoin’s growth presents a cautionary tale about user engagement. Despite the asset’s remarkable price rally, surpassing the $100,000 mark, the growth in user acquisition stood at a relatively modest 935,900 monthly. This figure fell short of what one might expect given the hype surrounding Bitcoin ETFs and its price surges. Flipside identified a challenging trend where the user count dropped significantly after the U.S. election rally, signaling that many were merely speculating rather than transitioning into new, engaged users. This discrepancy is reflective of Bitcoin’s status as a mature asset, attracting existing users more than new ones.
The contrasting experiences of Base, Ethereum, and Bitcoin in 2024 provide essential lessons for the crypto industry at large. While explosive user growth can elevate a network to new heights, sustained engagement and a dynamic ecosystem are pivotal for long-term success. As crypto continues to evolve, the networks that prioritize user experience, education, and utility will be better positioned to capture the next wave of crypto enthusiasts and investors. The 2024 story is far from over, and the opportunities for innovation abound amidst these trends.
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