Key Notes
- In October alone, Base added 13.7 million users, making it the fastest-growing chain.
- While Base excels in user engagement, newer blockchain networks like Aleo have faced difficulties in retaining users.
- Base has effectively scaled engagement through strategic features and partnerships, positioning itself as a model for growth.
In its latest report, Flipsight noted that Coinbase‘s Layer-2 blockchain network Base has registered massive user growth averaging 1.56 million new users throughout 2024 and outperforming giants like Ethereum. In October alone, the Base network added 13.7 million new users thereby making it the fastest-growing chain.
Although the Ethereum network has further solidified its position with a steady dominance in user acquisition, the growth of the Base network has been disruptive. Similarly, the Polygon network also saw engagement expanding its user base driven by non-DeFi activity. On the other hand, despite the BTC price surge above $100,000, the Bitcoin blockchain lagged in network growth and new user onboarding.
Photo: Flipside
Here’s How Coinbase’s Base Outpaced Ethereum
Base has attracted 15.1 million super users – individuals with over 100 transactions – outpacing both Ethereum and Polygon. This achievement underscores Base’s strong user engagement and positions it as a standout platform. Meanwhile, Polygon has thrived by diversifying its activities, consistently maintaining high transaction volumes across gaming and non-financial sectors.
Looking into the decentralized exchange (DEX) market, Ethereum-based largest DEX platform Uniswap solidified its position contributing to 91.3% of acquired user activity on Base. Similarly, Trader Joe continued to lead on Avalanche, bolstered by features such as Auto-Pools and multi-chain capabilities.
This development further highlights the growing consolidation of DEX activity among other key players. On the other hand, newer chains are navigating the challenge of balancing between innovation and user retention.
New blockchain networks like Aleo showed promising growth but struggled with maintaining user engagement. In contrast, Base has emerged as a model for scaling engagement through strategic features and partnerships.
Institutional Confidence Surges amid Macro Development
The Flipside report also noted that regulatory clarity has been crucial in driving institutional adoption of digital assets this year in 2024. Moreover, the report mentions that EU’s Markets in Crypto-assets Regulation (MiCA) boosted institutional confidence, driving ETF launches and increased adoption. This led to steady user growth across different blockchain networks.
As the crypto market evolves, emerging trends such as GameFi and AI integration are likely to accelerate adoption. These innovations have the potential to tackle scalability and data management issues, creating new opportunities for wider user engagement. In its report, Flipside noted:
“Behind the headlines of record user growth lies a deeper challenge: building ecosystems that create meaningful, lasting engagement, not just fleeting speculation. In short, most blockchains are still scratching the surface when it comes to turning casual users into high-value contributors.”
Flipside reported that 2024 was a formative year for the crypto industry with legacy platforms competing with other emerging platforms. However, the important factor for growth in 2025 would be balancing innovation, user retention, and regulatory adaptation.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
