As a seasoned crypto investor with a decade of experience under my belt, I’ve witnessed the rollercoaster ride that is the crypto market. The 2024 growth spurt was indeed remarkable, but it seems that the real action was happening off-screen – at least when it comes to on-chain users.
2024 saw a significant surge in the crypto sector, fueled by escalating coin prices. However, the number of active on-chain users on most pertinent blockchains didn’t follow the same trend. A 2024 report on on-chain users, conducted by the blockchain expansion platform Flipside, highlighted that networks need to deliver both volume and quality of on-chain activity in order to draw users and transform them into valuable contributors.
As per a report recently disclosed to CryptoPotato, it’s only the layer-2 network known as Base, initiated by the biggest U.S crypto exchange, Coinbase, that witnessed an explosive increase in user numbers for 2024. In contrast, networks such as Bitcoin and certain Ethereum-associated layer-2 platforms found it challenging to sustain their expansion or draw fresh users during the year.
Base and Ethereum Take the Lead
2024 marked a significant increase in new users for Base in the crypto world, with an astonishing 13.7 million joining its ranks. This number is nearly eight times larger than that of the second most successful platform, Polygon, and was achieved despite a slow start in January. By the end of October, the total number of new users on Base had soared to an unprecedented level.
During this year, Base also attracted 15.1 million super users executing over 100 decentralized finance (DeFi) transactions. This growth was 38.4% more than that of the next chain, Ethereum, which saw 10.7 million super users.
In addition to Base, Ethereum experienced substantial growth in its user base. On average, it added around 1.56 million new users every month, outpacing both its layer-2 networks Arbitrum and Optimism. Furthermore, Ethereum’s super users involved in DeFi reached a staggering 10.9 million, significantly outnumbering the user counts of Arbitrum (6.2 million) and Optimism (1.8 million).
It appears that Flipside observed an increase in the adoption of cryptocurrencies by institutions, which may have contributed significantly to the expansion seen on various platforms. Additionally, significant events like Grayscale considering several new cryptocurrencies for potential investment might have played a part in this growth.
Bitcoin Users Barely Grew
Contrary to expectations, the number of Bitcoin users increased by 935,900 per month, even as Bitcoin’s price soared past $100,000 and U.S.-based spot Bitcoin ETFs were introduced into the market.
In March, when Bitcoin experienced a significant surge, there was a 19.2% increase in new users joining the network each month. However, following the U.S. elections in November, the number of Bitcoin users decreased by 28.5%.
In simpler terms, Flipside suggests that this growth in Bitcoin development is more about speculation among current users rather than a large number of new people joining the Bitcoin community.
Over these periods, the influence and growth of the decentralized exchange Uniswap was particularly notable on both Ethereum and other platforms like Base. It continued to strengthen and extend its leadership role.
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2024-12-21 15:30