The cryptocurrency landscape in 2024 witnessed a compelling juxtaposition: while crypto asset prices skyrocketed, user engagement across multiple prominent blockchains displayed a more nuanced narrative. The report released by Flipside, a blockchain analytics platform, highlights critical insights into user acquisition and retention within the crypto sphere. This examination of user data suggests that while some networks flourished, others struggled to capture sustainable engagement.
Among the various blockchains examined, Base—a layer-2 solution initiated by Coinbase—emerged as a standout performer. The report details an astounding 56-fold increase in user activity since January 2024. By October, Base was responsible for onboarding approximately 13.7 million new users, positioning it as a dominant player with user numbers vastly outpacing its closest competitor, Polygon. This surge can be attributed to a strategic focus on enhancing user experience and easing barriers to on-chain participation.
Moreover, the term “super users,” referring to those executing a high volume of decentralized finance (DeFi) transactions, highlights Base’s effectiveness in converting casual users into dedicated participants. With 15.1 million super users completing over 100 transactions each, Base’s engagement strategies seemed particularly successful in converting user interest into a robust activity.
Ethereum also demonstrated substantial resilience in user engagement. The second-largest blockchain averaged over 1.56 million new users monthly, outperforming its layer-2 counterparts—Arbitrum and Optimism. With 10.9 million super users, Ethereum maintained its standing as a cornerstone for DeFi activities. Factors contributing to Ethereum’s stable growth likely include its established reputation and the increasing institutional interest in cryptocurrencies, as evidenced by significant investments and listings by major asset managers.
In contrast to the booming activity seen in Base and Ethereum, Bitcoin’s user growth was somewhat underwhelming. Despite BTC reaching historical price thresholds above the $100,000 mark and the introduction of Bitcoin exchange-traded funds (ETFs) in the U.S., the increase in user acquisition was limited. The 935,900 monthly new users paled in comparison to other chains, and the subsequent drop-off in user acquisition post-elections indicated a worrying trend—one that suggests existing users were largely engaged in speculative trading rather than actively onboarding new participants.
The Role of Institutional Interest
Flipside noted that greater institutional adoption appears to be stoking user interest across select cryptocurrencies. Developments like Grayscale’s management of additional cryptocurrency assets have likely contributed to the positive growth outlined for Base and Ethereum. However, the stagnant user activity on chains like Bitcoin points to a growing dichotomy: while institutional validators may encourage market confidence, they may not catalyze grassroots engagement, which is critical for a blockchain’s long-term health.
As the crypto industry continues to evolve, reinforcing user engagement across all chains will be key. The disparate growth tales of Base and Ethereum juxtaposed against Bitcoin’s faltering user metrics present a compelling case for the need for innovative community engagement strategies. If blockchain networks can foster genuine participation rather than transient speculative interest, the crypto landscape in 2025 may present a far more unified and vibrant framework for adoption and participation.
Leave a Reply