Most blockchains are still in the early stages of converting ordinary users into high-value contributors.
Author: flipside
Translation: Deep Tide TechFlow
1. Introduction
On-chain User Trends Towards 2025
2024 is a pivotal year for Web3 user growth, with the number of new users and super users on major public chains reaching historic highs. Public chains like Base are redefining what exponential growth looks like, while Ethereum and its L2 solutions demonstrate how a deeply rooted ecosystem can adapt to evolving user needs.
However, a deeper analysis of the data reveals that not all growth holds the same value—this underscores the importance of focusing not just on quantity but also on quality when evaluating on-chain activity.
To this end, this report is based on Flipside's real-time data on on-chain crypto users for 2024, and it evaluates this year's cryptocurrency activity through more actionable multivariable metrics in addition to traditional performance indicators, providing a new way to assess the health of on-chain users in 2025.
Summary
Behind the news of user growth lies a deeper challenge: how to build ecosystems that create meaningful, lasting engagement rather than just fleeting speculative behavior.
In short, most blockchains are still in the early stages of converting ordinary users into high-value contributors.
User Acquisition Status:
Base: In October 2024, it set a record with 19.4 million new users, contributing 13.7 million users—almost 8 times that of the second-place Polygon.
BTC: Despite Bitcoin's price reaching an all-time high of over $100,000, the monthly average of new users for Bitcoin only grew by 935,900, indicating widespread speculative activity among existing users rather than a significant influx of new users.
ETH: The monthly average of new users reached 1.56 million, surpassing Arbitrum and Optimism, with a month-on-month user growth of 33.4% in March. Notably, Arbitrum achieved a remarkable peak of 3.3 million new users in May.
Super User Status:
Base: Attracted 15.1 million wallets that executed over 100 DeFi transactions, 38.4% more than Ethereum's 10.7 million super users in second place.
ETH: The number of DeFi-related super users reached 10.9 million, exceeding the combined total of Arbitrum and Optimism (6.2 million and 1.8 million, respectively), highlighting Ethereum's advantages in liquidity and convenience.
Polygon: Added 1.5 million super users in 2024 and recorded 867.7 million super user transactions this year, showcasing its success in areas beyond DeFi.
DEX Usage:
Uniswap: Expanded its dominance on major public chains, accounting for 91.3% of new user DEX activity on Base, and its market share on Ethereum grew by 27.72% compared to 2023.
Despite Uniswap's growth, Trader Joe maintained its leading position on Avalanche, with a market share of 61.1%, an increase of 6.1% from 2023.
Unlike 2023, the top three DEX rankings for acquiring users and super users remained consistent across all observed public chains in 2024.
2. New User Acquisition
The number of new users reached a monthly peak of 19.4 million in October 2024.
This year's on-chain user growth was led by Base, which contributed 13.7 million new users that month—almost 8 times that of the second-place Polygon. Overall, it has been an impressive year for the entire on-chain user growth industry. The number of new users has shown a continuous upward trend throughout 2024, with only a slight pullback in August.
Note: "New users" are defined as users who have conducted at least 2 transactions on a chain, with the second transaction occurring in 2024.
This sustained growth may be influenced by increased institutional acceptance of cryptocurrencies, as reflected in a series of BTC and ETH ETFs announced earlier this year.
Other exciting developments in the first half of 2024 may have also fueled this optimism, such as Grayscale listing several new cryptocurrencies as "assets under consideration," and the Federal Reserve's decision to cut U.S. interest rates by 50 basis points during the September 2024 Federal Open Market Committee (FOMC) meeting—the first rate cut in four years.
Base's Remarkable Growth
Base started slowly in 2024, but since January, its monthly new user count has skyrocketed by 56 times.
In January, Base had only 244,700 new users, but it experienced steady and significant growth throughout the year. By November, when it peaked, the monthly new user count had increased 56 times compared to January, averaging 4.7 million new users per month during 2024.
The chain's performance greatly benefited from Coinbase's large user base, which collectively manages about $130 billion in assets. Popular DeFi protocols like Aerodrome may have also attracted users from other EVM chains, while Base successfully drove user interest through trending areas like meme coin trading and on-chain AI (such as new initiatives like Based Agents).
Bitcoin's Performance
Despite BTC's price reaching an all-time high, it did not attract a large number of new users this year.
The number of new users for Bitcoin remained relatively stable in 2024, despite the significant appreciation of BTC's value. Overall, Bitcoin's monthly average of new users grew by 935,900, ranking third from the bottom among the seven traditional public chains observed in this report.
This indicates that the appreciation of Bitcoin's price is primarily driven by the enthusiasm and speculative activity of its existing user base, and the price increase of BTC has had mixed effects on attracting new users.
In March 2024, the first major price surge of BTC coincided with a month-on-month user growth of 19.2%, but in November—when BTC reached the long-awaited $100,000 milestone during a sustained price increase—the number of new users actually decreased by 28.5% month-on-month.
Ethereum and L2 Performance
Ethereum's new user acquisition overall surpassed its traditional L2s, but Arbitrum also saw impressive single-month growth.
Ethereum's growth in 2024 exceeded that of its two leading L2 chains, with a monthly average of 1.56 million new users, compared to 1.2 million for Arbitrum and 348,800 for Optimism. Excluding December, Ethereum only experienced month-on-month declines in four months and reached a single-month peak of 1.9 million new users in March—a month-on-month growth of 33.4%.
Both Arbitrum and Optimism started the year with considerable momentum, reaching peaks in user acquisition growth in April and May 2024, respectively, but user growth declined for the remainder of the year.
Notably, the 3.3 million new users that Arbitrum achieved in May surpassed any single-month peak for Ethereum in 2024. In this context, Arbitrum's user acquisition growth consistently outpaced Optimism throughout the year, thanks to the success of its Arbitrum One initiative and the integration and expansion of GameFi and SocialFi. With 169 builder grants approved in the first half of 2024, along with many behind-the-scenes advancements, it remains to be seen whether this chain can reclaim its position as the leading global EVM L2 chain.
Performance of New Public Chains in 2024
Among the public chains launched in 2024, Aleo achieved the highest average user acquisition growth, while Blast saw a gradual decline after setting a single-month record.
For newly launched public chains, Aleo had the highest user acquisition growth in the month of its launch, averaging 175,200 new users, compared to 134,900 for Blast and 90,700 for Aleo. This can be attributed to Blast's sharp decline in user acquisition starting in July, as well as Sei's slow start—despite its mainnet launching months ago, it only reached a month-on-month peak of 324,500 users in October.
It remains unclear whether these public chains can regain growth momentum in 2025—especially considering that Base also experienced a similar post-launch cooling period before its surge in 2024. Among the four new public chains tracked, Lava's performance has so far been overshadowed by competitors, and although Blast set the highest monthly user acquisition growth among newly launched public chains in June, there is still much ground to cover.
3. Super Users
As of December 2024, Base has the most DeFi-related super users, with 15.1 million wallets executing 100 or more transactions.
In addition to acquiring the most new users, Base also attracted the largest number of DeFi-related super users, with the number of users executing 100 or more transactions exceeding that of second-place Ethereum by 38.4%. Following closely are Ethereum's 10.7 million new super users and Polygon's 7 million.
Note: "Super users" are defined as users who have executed at least 100 transactions on a chain, regardless of the creation time of the associated wallets or the time of the last transaction.
Given Base's explosive growth this year, its impressive number of super users may not be surprising. This success is likely attributed to Base's ability to surpass many traditional public chains in several popular areas this year, including but not limited to meme coin and NFT trading.
On the other hand, Avalanche and Blast have similar numbers of super users this year, averaging around 1.3 million, while Optimism performed slightly better with 1.7 million users conducting at least 100 DeFi transactions.
Polygon's Outstanding Performance
Polygon has added the most super users this year and continues to stand out in non-DeFi-related super user activity.
Polygon has attracted 1.5 million new super users in 2024—almost double that of second-place Base.
Polygon's super user activity has also surpassed all other observed public chains, with an average monthly super user transaction volume of 867.7 million this year. Apart from Base's impressive 786.3 million super user transactions, Arbitrum has also performed strongly in 2024, reaching 365.3 million super user transactions.
Polygon's excellent performance continues its long-standing leadership in super user activity since 2021. In 2021, Polygon's transaction volume reached 1.14 billion, setting the highest record for super user activity across all blockchains, which still stands today.
However, despite having the highest volume of super user activity among all blockchains, the number of DeFi-related super user wallets on Polygon ranks only third. This indicates that Polygon has successfully attracted a large number of high-frequency trading users through GameFi and other application scenarios, rather than relying solely on DeFi applications.
Ethereum's number of super users in the DeFi space exceeds the combined total of Arbitrum and Optimism.
As of 2024, Ethereum has reached 10.9 million super users in the DeFi space, second only to Base. This figure is significantly higher than the combined total of Arbitrum (6.2 million) and Optimism (1.8 million).
While EVM L2 (Ethereum Virtual Machine compatible Layer 2 networks) generally offers faster speeds and lower transaction costs, many users may still find cross-chain asset bridging too complex or risky, or may prefer to use the Ethereum mainnet due to its deeper liquidity and more mature market position.
However, Ethereum's Layer 2 networks need to explore further methods to attract users, rather than relying solely on their performance advantages over the Ethereum mainnet to drive on-chain activity.
4. DEX Users
Uniswap continues to expand its market share across major blockchains, further solidifying its position as the leader in the decentralized exchange (DEX) space.
Among all observed chains, Uniswap remains the undisputed number one, with the exception of Avalanche and Blast chains. Notably, on the Base chain, Uniswap's user share skyrocketed from 36.8% to 91.3%. Given the exponential growth of users on the Base chain this year, this achievement is particularly remarkable.
Similarly, Uniswap's performance on other major chains has also improved. Compared to 2023, its DEX activity share on Ethereum increased by 27.72%, while on Polygon it grew by 12.57%. It is worth mentioning that Polygon has historically had a more fragmented distribution of DEX activity, with its user base exhibiting more diverse trading behaviors compared to other leading chains.
Even without considering Uniswap's protocol upgrades, this phenomenon may reflect the "winner-takes-all" trend in the DeFi space, where larger platforms capture a greater market share due to their deep liquidity and brand recognition.
On Avalanche, Trader Joe has further solidified its leading position, while Uniswap has also risen in the rankings.
Uniswap is now the second most popular DEX on Avalanche, having failed to make the top five in 2023. However, Trader Joe remains the most popular DEX on Avalanche, commanding a 61.1% market share, and has increased its market share by about 6% since 2023.
As the first major DEX natively built on Avalanche, Trader Joe has been committed to maintaining and expanding its market leadership. The Auto-Pools feature launched in April this year allows liquidity providers (LPs) to more easily automate their positions and compound returns. Additionally, the platform supports liquidity staking for various Avalanche assets and is actively expanding to new chains like Arbitrum and BNB Chain, validating the feasibility of its unique liquidity book (LB) model.
As a result, Trader Joe's efforts provide a successful case study for other platforms looking to establish themselves in the competitive DEX market.
The DEX preferences of super users and new users are becoming more aligned, but the trading activity distribution of super users remains more diverse.
Unlike in 2023, the top three DEXs used by super users and new users on each observed chain are now consistent. This indicates that new users are becoming more adept at mimicking the behaviors of experienced traders, or that leading DEXs have found more effective ways to optimize trading paths.
Nevertheless, the trading activity of super users is still distributed across more DEXs, as they are more familiar with a broader range of DeFi protocols and are willing to explore opportunities beyond mainstream platforms like Uniswap in pursuit of higher yields or unique trading conditions.
Looking Ahead: Opportunities and Challenges for Web3 in 2025
On-chain data shows that the number of Web3 users continued to grow in 2024, while traditional blockchains and emerging competitors face the challenge of standing out in the market and providing attractive application scenarios for both new and existing users. Additionally, the rise in prices of on-chain native tokens has not significantly driven diversified on-chain activity, and emerging DeFi protocols have encountered considerable resistance when challenging established giants.
Here are some key trends to watch for in 2025:
- Base as a Benchmark for Ecosystem Expansion
In 2024, Base has become a model for attracting and retaining new users with its explosive user growth, providing a reference for other new blockchains looking to make their mark. Base's success in meme coin trading and on-chain AI applications indicates that innovative use cases around popular areas will continue to drive user growth in 2025. However, how to convert these high-frequency trading activities into more lasting and diversified user engagement remains a significant challenge.
- Ethereum User Growth Brings New Opportunities for L2 Chains
Although Ethereum's Layer 2 networks (L2) generally have performance advantages, Ethereum remains at the core of the Web3 economy due to its large user base and liquidity. L2 chains like Optimism may further adjust their strategies to attract Ethereum's growing base of ordinary users and guide them into their own on-chain ecosystems.
- Differentiation or Economies of Scale as Keys to Success
Uniswap's increasing market dominance indicates that the DeFi market is exhibiting a "winner-takes-all" trend. However, chains like Avalanche and Polygon have demonstrated that targeted innovations can secure significant positions in specific markets. For example, Trader Joe's Auto-Pools feature simplifies operations for liquidity providers, while Polygon's GameFi projects have attracted a large number of gamers. Looking ahead to 2025, protocols that can offer differentiated on-chain services beyond traditional DeFi functionalities are more likely to capture market attention.
- Shift from User Quantity to User Quality
As new users continue to flood in, builders in the blockchain ecosystem need to find ways to incentivize users to engage in more diverse activities, such as governance voting and staking, rather than just trading. With the rapid growth in the number of wallets, chains that prioritize user quality and focus on diversified participation will have an advantage in the long-term healthy development of the ecosystem.
5. Data-Driven Insights into User Quality
What are Flipside Scores?
As 2025 approaches, the Web3 industry faces a significant challenge: how to distinguish between short-term active phenomena and genuine sustainable growth. While the surge in new users and transaction volumes in 2024 brings an optimistic outlook for the industry, the key question is whether these users will remain long-term and contribute to the long-term development of the blockchain ecosystem. Flipside Scores are designed to address this issue.
Flipside Scores quantify the quality of user on-chain activity by integrating 15 performance metrics (covering five categories). Unlike simple metrics based solely on transaction volume, this approach provides a comprehensive reflection of the breadth and depth of user activity, revealing which ecosystems are performing well and where there is still room for improvement.
User Quality Trends Across Different Chains
Overall, in 2024, as the number of wallets and on-chain transaction volumes surged, the user quality across chains has declined. This phenomenon reflects that the industry has attracted a large number of new users, who currently have low engagement but are expected to gradually explore the diverse use cases offered by Web3 in the future.
Here are some key findings:
Base: A typical success case in user growth for 2024. Although the chain's user quality score is low, this does not mean that Base is underperforming overall. On the contrary, it indicates that its large new user base is currently concentrated in a limited number of on-chain activities, and there is still significant room for improvement by guiding these users to participate in more diverse ecosystem activities in the future.
ETH: Experienced a significant decline in user quality prior to the listing of multiple ETH ETFs approved by the U.S. Securities and Exchange Commission (SEC). This suggests that while the influx of institutional funds can drive rapid growth in wallet numbers, without sufficient incentive mechanisms and convenient participation pathways (such as protocol governance), the depth of users' on-chain activity may be difficult to enhance.
Blast: Successfully attracted users to actively participate in multiple on-chain activities during its early launch, showcasing its strong capabilities in incentivizing gamified activities. Although Blast's user growth slowed in the fourth quarter of 2024, the remaining users remain active across various fields, indicating that the chain is likely to surpass its initial hype and achieve long-term development.
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