In 2024, the crypto industry has experienced a turbulent year, marking a significant shift in how it attracts users and evolves within the ecosystem.
According to a report from Flipside, user engagement has grown significantly, particularly on the Base and Ethereum platforms. At the same time, decentralized exchanges (DEXs) and new blockchain projects have reshaped the competitive landscape.
Base, a blockchain platform developed by Coinbase, led the market in 2024 with 13.7 million new users just in October. This explosion has made Base the fastest-growing chain, surpassing Ethereum's steady growth of an average of 1.56 million new users per month. Meanwhile, Bitcoin, despite reaching a price of $100,000, has lagged in growth, indicating a more speculative interest rather than attracting new users.
Ethereum's stability in user acquisition has solidified its strong position, but the rapid growth of Base has demonstrated the potential of new chains to disrupt the current ecosystem structure. Additionally, Polygon has also seen increased engagement, leveraging non-DeFi activities to expand its user base.
Base has attracted 15.1 million "super-active users" - those who have made over 100 transactions, surpassing both Ethereum and Polygon. This milestone reflects Base's ability to maintain user engagement, making it a standout platform. In contrast, Polygon has excelled in diversifying its activities while maintaining high trading volume in the gaming and non-financial use cases.
Uniswap continues to consolidate its dominant position in the decentralized exchange (DEX) space, accounting for 91.3% of user activity on Base. On Ethereum, Uniswap's market share has also increased, reinforcing its market-leading role. Trader Joe has maintained its top position on Avalanche, thanks to features like Auto-Pools and multi-chain capabilities.
These changes indicate that DEX activity is increasingly concentrating around the "big players," marking a maturing market. However, new chains are facing the challenge of balancing innovation and maintaining user engagement.
Emerging blockchains like Aleo have shown promising growth potential but still face challenges in sustaining user commitment. Meanwhile, Base has emerged as a model for expanding engagement through its features and strategic partnerships. These new ecosystems need to expand beyond just trading to compete more effectively in the broader crypto space.
According to the Flipside report, regulatory clarity plays a crucial role in shaping the crypto landscape in 2024. The European Union's MiCA regulation has helped to build institutional trust, driving the launch of ETF funds and broader adoption. These developments have supported steady user growth on leading chains.
Ethereum remains a critical platform for innovation, particularly in the development of Layer 2 solutions. While Ethereum continues to grow in user numbers, driving deeper engagement and creating new use cases remains a significant challenge.
As the market matures, emerging trends like GameFi and AI integration are expected to drive increased adoption. These innovations can address scalability and data management issues, opening up opportunities for broader user engagement.
"Behind the headlines of record user growth lies a deeper challenge: building ecosystems that create sustained and meaningful engagement, rather than just fleeting speculation. In short, most blockchains are still only scratching the surface when it comes to turning casual users into valuable contributors," the report emphasizes.
The Flipside report highlights a pivotal year for crypto, where established platforms compete with emerging ecosystems. The future will depend on how chains balance innovation, user retention, and regulatory adaptation to maintain momentum in 2025.
With platforms like Base leading the charge and Ethereum solidifying its dominant position, the competition for user activity and engagement will continue to be fierce.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.
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Dinh Dinh
According to Beincrypto
