According to Flipside’s on-chain analysis, this is how much cryptocurrency users grew by 2024

The crypto industry grew remarkably in 2024 amid rising coin prices, but the same cannot be said for the chain users of the most relevant chains. A 2024 Users on Chain report by blockchain growth platform Flipside revealed the need for networks to deliver quantity and quality on-chain activity to attract users and turn them into high-value contributors.

According to the report shared with CryptoPotato, only Base, the layer 2 network launched by the largest US crypto exchange, Coinbase, experienced exponential growth in the number of users by 2024. Other networks, such as Bitcoin and some Ethereum-based layer 2 chains, struggled to maintain their growth or even attract new users throughout the year.

Base and Ethereum take the lead

Flipside’s report revealed that Base’s monthly acquired users skyrocketed 56 times this year despite a slow start in January. In October 2024, the crypto space saw its newly acquired users increase to a record 19.4 million, however, Base contributed 13.7 million, almost 8 times the second highest contributing chain, Polygon .

During this year, Base also attracted 15.1 million super users who executed more than 100 decentralized finance (DeFi) transactions. This growth was 38.4% more than that of the next chain, Ethereum, which had 10.7 million super users.

In addition to Base, Ethereum also experienced impressive growth in its user activity. The second largest crypto network averaged 1.56 million acquired users per month, surpassing its layer 2 networks Arbitrum and Optimism. The chain’s DeFi-related super users totaled 10.9 million, crushing the respective 6.2 million and 1.8 million users of Arbitrum and Optimism.

Flipside noted that the growing institutional acceptance of cryptocurrencies likely drove this growth in some chains. Notable developments, such as leading asset manager Grayscale listing several new cryptocurrencies as “assets under consideration”, must also have fueled growth.

Bitcoin users barely grew

On the other hand, users acquired by Bitcoin grew by 935,900 monthly despite the historic rise of Bitcoin (BTC) above the $100,000 level and the launch of Bitcoin Cash Exchange Traded Funds (ETF) in the United States .

During bitcoin’s main rally in March, the network saw a 19.2% increase in monthly acquired users. Unfortunately, users acquired for Bitcoin dropped 28.5% during the rally following the US election in November.

Flipside said this development indicates widespread speculative activity among existing Bitcoin users and not a significant addition of new users.

Meanwhile, decentralized exchange Uniswap maintained and expanded its dominance on major chains, especially Base and Ethereum.

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