The cryptocurrency industry experienced significant growth in 2024, primarily driven by the increase in coin prices. However, the rise in on-chain users across most major networks tells a different story.
A recent report from a blockchain growth platform emphasizes the need for networks to improve both the quantity and quality of on-chain activities to attract and retain users, ultimately transforming them into valuable contributors.
While some networks struggled to maintain user growth, Base, the layer-2 network launched by Coinbase, saw remarkable success in 2024. Base's monthly user acquisition increased by 56 times compared to the previous year, with a total of 19.4 million newly acquired users in the crypto space by October. Base attracted a significant number of super users, defined as those executing over 100 decentralized finance (DeFi) transactions, surpassing Ethereum in this regard.
Ethereum, the second-largest cryptocurrency network, also reported substantial growth in 2024, outpacing its layer-2 counterparts. The DeFi-related super user count on Ethereum was significantly higher than on Arbitrum and Optimism.
The report suggests that the growing institutional interest in cryptocurrencies has played a pivotal role in driving user activity across various chains. As more traditional financial institutions recognize the potential of digital assets, the influx of new users is likely to continue. This trend is further supported by the increasing number of financial products and services being offered in the crypto space, catering to both retail and institutional investors.
In contrast to the growth seen in Base and Ethereum, Bitcoin's user acquisition numbers remained relatively stagnant. Despite Bitcoin's price surge and the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, the network only saw a modest increase in acquired users. This suggests that the increase in Bitcoin's price has not translated into a substantial onboarding of new users, indicating a pattern of speculative activity among existing users.
Uniswap has maintained its dominance in the decentralized exchange (DEX) sector, particularly on Base and Ethereum. The platform has capitalized on the growing interest in DeFi and the increasing number of users engaging in decentralized trading activities. The success of Uniswap highlights the importance of user experience and the need for platforms to offer seamless and efficient trading solutions.
The growing institutional acceptance of cryptocurrencies is a significant factor influencing user growth across various networks. As traditional financial institutions increasingly recognize the potential of digital assets, the influx of institutional capital is expected to drive further adoption and engagement in the crypto space. This dynamic is likely to create new opportunities for both established players and emerging projects, fostering a more vibrant and diverse crypto ecosystem.