**2024 marks a pivotal turning point for Web3 user growth, with major public blockchains reaching new highs in user acquisition.**
Based on Flipside data, this article explores the on-chain user growth trends and reveals how to achieve sustainable ecosystem participation during short-term market surges. The report is sourced from Flipside and compiled by Deepflow TechFlow.
*Previous context: Web3 Report: Emerging Markets Accelerate Cryptocurrency Rise, Meme Coins Ignite Global Investment Frenzy*
*Background note: 2024 Global Crypto Developer Report: Annual growth rate of 39%, with Asia surpassing North America for the highest share.*
### 1. Introduction: On-Chain User Trends Leading into 2025
2024 marks a critical year for Web3 user growth, with major public blockchains recording historic highs in the number of new users and super users. Blockchains like Base have redefined what exponential growth looks like, while Ethereum and its Layer 2 (L2) solutions have demonstrated how entrenched ecosystems can adapt to the evolving needs of users.
However, upon deeper analysis, it becomes clear that not all growth carries the same value — this highlights the importance of focusing not only on the quantity of on-chain activity but also on its quality.
Thus, this report leverages Flipside’s real-time data on 2024’s on-chain crypto users, introducing actionable, multivariable metrics alongside traditional performance indicators to evaluate this year’s cryptocurrency activity. It also provides new methods to assess the health of on-chain users heading into 2025.
**Summary**
Behind the news of user growth lies a deeper challenge: how to build ecosystems that generate meaningful, long-lasting participation rather than just short-term speculative behavior.
In short, most blockchains are still in the early stages of converting ordinary users into high-value contributors.
**User Acquisition Overview**:
– **Base**: In October 2024, Base set a new record by acquiring 19.4 million new users, with Base contributing 13.7 million — almost eight times more than the second-place Polygon.
– **BTC**: Despite Bitcoin reaching an all-time high of $100,000, its user acquisition grew at an average of only 935,900 per month, indicating widespread speculative activity rather than significant new user adoption.
– **ETH**: Ethereum acquired an average of 1.56 million users per month, surpassing Arbitrum and Optimism. In March, it saw a month-over-month user growth of 33.4%. Notably, Arbitrum reached an outstanding peak of 3.3 million new users in May.
**Super User Acquisition Overview**:
– **Base**: Attracted 15.1 million wallets that executed more than 100 DeFi transactions, 38.4% more than the second-place Ethereum, which had 10.7 million super users.
– **ETH**: 10.9 million DeFi-related super users exceeded the combined total of Arbitrum and Optimism (6.2 million and 1.8 million, respectively), highlighting Ethereum’s advantages in liquidity and convenience.
– **Polygon**: In 2024, Polygon added 1.5 million super users and recorded 867.7 million super user transactions, showcasing its success beyond DeFi applications.
**DEX Activity Overview**:
– **Uniswap**: Expanded its dominance across major blockchains, accounting for 91.3% of new DEX activity on Base. Its market share on Ethereum grew by 27.72% compared to 2023.
– Despite Uniswap’s growth, **Trader Joe** maintained its lead on Avalanche, capturing 61.1% of the market, an increase of 6.1% from 2023.
– Unlike in 2023, 2024 saw consistent rankings among the top three DEXs for both new users and super users across all observed blockchains.
### 2. New User Acquisition
In October 2024, the number of new users reached a monthly peak of 19.4 million.
User acquisition in 2024 was primarily led by Base, which contributed 13.7 million new users that month — nearly eight times that of second-place Polygon. Overall, new user acquisition showed a consistent upward trend throughout the year, with only a minor dip in August.
*Note: “New users” are defined as users who made at least two transactions on a blockchain, with the second transaction occurring in 2024.*
This sustained growth is likely influenced by institutional acceptance of cryptocurrencies, reflected in the announcement of various BTC and ETH ETFs earlier this year.
Other exciting developments in the first half of 2024, such as Grayscale listing multiple new cryptocurrencies as “assets under consideration,” and the U.S. Federal Reserve’s 50 basis point rate cut during the September Federal Open Market Committee (FOMC) meeting — the first rate cut in four years — may have also fueled this optimistic sentiment.
**Base’s Astonishing Growth**
Base had a slow start in 2024 but saw its monthly new user acquisition surge by 56 times since January.
In January, Base only acquired 244,700 new users, but by November, its monthly acquisition reached a peak, growing 56 times compared to January, with an average of 4.7 million new users per month throughout 2024.
Base’s performance has greatly benefited from Coinbase’s large user base, managing approximately $130 billion in assets. Popular DeFi protocols like Aerodrome may have attracted users from other EVM chains, while Base successfully drove user interest through meme coin trading and on-chain AI initiatives like Based Agents.
**Bitcoin’s Performance**
Despite Bitcoin reaching an all-time high, it did not attract a significant number of new users this year.
Bitcoin’s new user acquisition remained relatively steady throughout 2024, even with significant price appreciation. Overall, Bitcoin’s average monthly new user acquisition was 935,900, ranking third-to-last among the seven traditional blockchains observed in this report.
This suggests that Bitcoin’s price appreciation was primarily driven by existing users’ enthusiasm and speculative activity, rather than attracting new users.
In March 2024, when Bitcoin’s price surged, user acquisition grew by 19.2% month-over-month, but in November — when Bitcoin reached the long-awaited $100,000 milestone — user acquisition actually declined by 28.5%.
**Ethereum and L2 Performance**
Ethereum’s new user acquisition outpaced its leading L2s, but Arbitrum also showed impressive month-over-month growth.
In 2024, Ethereum’s monthly new user acquisition averaged 1.56 million, surpassing Arbitrum (1.2 million) and Optimism (348,800). Excluding December, Ethereum had only four months of month-over-month decline and reached a peak of 1.9 million new users in March, a 33.4% increase.
Arbitrum and Optimism both began the year with strong momentum, reaching their highest acquisition growth in April and May, respectively, but saw user growth slow during the remainder of the year.
Notably, Arbitrum’s May acquisition of 3.3 million new users exceeded any single-month peak recorded by Ethereum in 2024. Arbitrum’s user acquisition growth continued to surpass Optimism throughout the year, aided by the success of the Arbitrum One program and the integration of GameFi and SocialFi. In the first half of 2024, 169 builder grants were approved, and with numerous behind-the-scenes developments, it remains to be seen if the chain can reclaim its position as the global leader in EVM L2 chains.
**Performance of New Public Blockchains in 2024**
Among the new public blockchains launched in 2024, Aleo recorded the highest average new user acquisition growth, while Blast saw a peak in single-month activity before tapering off.
Of the newly launched public blockchains, Aleo saw the highest new user acquisition, averaging 175,200 new users per month, compared to Blast’s 134,900 and Sei’s 90,700. Blast’s dramatic decline in user acquisition since July and Sei’s slow start — despite launching its mainnet months earlier — contributed to this discrepancy. Sei reached its peak user acquisition of 324,500 in October.
It remains unclear whether these blockchains will regain momentum in 2025 — especially considering that Base also experienced a cooling-off period after its initial surge in 2024. Among the four new blockchains tracked, Lava has been overshadowed by competitors, and despite Blast’s peak new user growth in June, it still has a long way to go.
### 3. Super Users
As of December 2024, Base leads with 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 has also attracted the largest number of DeFi super users, with 38.4% more wallets performing 100 or more transactions than Ethereum’s 10.7 million super users. Polygon follows closely with 7 million.
*Note: “Super users” are defined as users who have executed at least 100 transactions on a blockchain, regardless of when the wallet was created or the last transaction occurred.*
Given Base’s explosive growth this year, its impressive super user count is likely unsurprising. This success is likely attributed to Base’s dominance in several popular areas this year, surpassing many traditional blockchains, including but not limited to meme coins and NFT trading.
At the other end of the spectrum, **Avalanche** and **Blast** have similar super user numbers, averaging around 1.3 million, while **Optimism** performed slightly better with 1.7 million users completing at least 100 DeFi transactions.
**Super Users Continue to Stand Out in Non-DeFi Related Activities**
Polygon has attracted 1.5 million new super users in 2024, nearly double the number of Base, which ranks second. Polygon’s super user activity has also surpassed that of all other observed public chains, with a monthly average super user transaction volume of 867.7 million so far 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 outstanding performance continues its long-standing leadership in super user activity since 2021. In that year, Polygon’s transaction volume reached 1.14 billion, setting the highest record for super user activity across all blockchains, a record that still holds today.
However, despite Polygon’s highest super user activity volume across all blockchains, the number of super user wallets related to DeFi (decentralized finance) ranks only third. This indicates that Polygon has successfully attracted a large number of high-frequency trading users through GameFi (blockchain-based gaming finance) and other use cases, not just relying on DeFi applications.
Ethereum has more super users in the DeFi space than the combined total of Arbitrum and Optimism. As of 2024, Ethereum has 10.9 million super users in the DeFi space, second only to Base. This figure far exceeds the combined total of Arbitrum (6.2 million) and Optimism (1.8 million).
Although EVM L2 (Ethereum Virtual Machine-compatible Layer 2 networks) typically offer faster speeds and lower transaction costs, many users may still find cross-chain bridging of assets overly complex or risky, or prefer to use Ethereum’s mainnet due to its deeper liquidity and more established market position.
Nevertheless, Ethereum’s Layer 2 networks need to further explore ways to attract users beyond simply relying on performance advantages over Ethereum’s 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) sector.
Among all observed chains, Uniswap remains the undisputed leader, with exceptions on Avalanche and Blast chains. Particularly on Base, Uniswap’s user share surged from 36.8% to 91.3%. Considering the exponential growth of Base’s users this year, this achievement is particularly impressive.
Similarly, Uniswap’s performance on other major chains has also improved. Compared to 2023, its share of DEX activity on Ethereum increased by 27.72%, and by 12.57% on Polygon. Notably, Polygon’s DEX activity has historically been more decentralized, with its user base exhibiting more diverse trading behaviors compared to other leading chains.
Even without considering Uniswap’s protocol upgrades, this trend may reflect the “winner takes all” nature of the DeFi sector, where larger platforms dominate the market due to their deep liquidity and brand recognition.
On Avalanche, Trader Joe has further solidified its leadership position, while Uniswap’s ranking has also risen.
Uniswap is now the second most popular DEX on Avalanche, a significant rise from not even being in the top five in 2023. However, Trader Joe remains the most popular DEX on Avalanche, commanding a 61.1% market share, an increase of around 6% from 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, allows liquidity providers (LPs) to automatically adjust positions and compound yields more easily. Additionally, the platform supports liquidity staking for various Avalanche assets and has actively expanded to new chains such as Arbitrum and BNB Chain, validating the viability of its unique liquidity book (LB) model.
The results show that Trader Joe’s efforts provide a successful case for other platforms hoping to gain a foothold in the competitive DEX market.
**Super Users and New Users Show Consistent DEX Preferences, but Super User Activity Remains More Diverse**
Unlike in 2023, the three most-used DEXs on each observed chain are now consistent between super users and new users. This suggests that new users have become more adept at mimicking the behaviors of experienced traders or that leading DEXs have found more effective ways to optimize transaction paths.
Nevertheless, super users still spread their trading activity across a broader range of DEXs. Compared to new users, they are more familiar with a wider array of DeFi protocols and are more willing to explore opportunities outside 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 both traditional blockchains and emerging competitors face the challenge of standing out in the market and offering appealing use cases to attract both new and existing users. Moreover, the rise in prices of native tokens has not significantly driven diversified on-chain activity, and emerging DeFi protocols face considerable resistance when challenging existing giants.
Here are some key trends to watch for in 2025:
**Base Becomes a Benchmark for Ecosystem Expansion Kits**
In 2024, Base became a model for attracting and retaining new users with its explosive user growth, providing a reference for other emerging blockchains. Base’s success in meme coin trading and on-chain AI applications demonstrates that innovative use cases around popular sectors will continue to drive user growth in 2025. However, converting these high-frequency trading activities into more sustainable and diversified user participation remains a key challenge.
**Ethereum’s User Growth Opens New Opportunities for L2 Chains**
Despite Ethereum’s Layer 2 networks typically offering superior performance, 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 pool of regular users and guide them into their ecosystems.
**Differentiation or Economies of Scale as Key to Success**
Uniswap’s increasing market dominance signals a “winner takes all” trend in the DeFi market. However, chains like Avalanche and Polygon demonstrate that targeted innovation can help carve out a significant position in specific markets. For example, Trader Joe’s Auto-Pools feature has simplified liquidity provision, while Polygon’s GameFi projects have attracted large numbers of gamers. Looking ahead to 2025, protocols that can provide differentiated on-chain services and move beyond traditional DeFi features will be better positioned to attract market attention.
**Shift from User Quantity to User Quality**
As new users continue to flood in, blockchain ecosystem builders must find ways to incentivize users to engage in more diversified activities, such as governance voting and staking, not just trading behaviors. With the rapid growth in wallet numbers, chains that prioritize user quality and diverse participation will have an advantage in ensuring the long-term healthy development of the ecosystem.
**5. Data-Driven Insights on User Quality**
**What are Flipside Scores?**
With the arrival of 2025, the Web3 industry faces an important challenge: how to differentiate between short-term active phenomena and true sustainable growth. While the surge in new users and transaction volumes in 2024 has brought an optimistic outlook, the key issue remains whether these users will stay long-term and contribute to the blockchain ecosystem’s long-term development. Flipside Scores were designed to address this question.
Flipside Scores quantify the quality of user on-chain activity by integrating 15 performance metrics across five categories. Unlike simple metrics based only on transaction volume, this approach provides a comprehensive view of user activity breadth and depth, revealing which ecosystems are performing well and where improvements are needed.
**User Quality Trends Across Different Chains**
Overall, as the number of wallets and on-chain transaction volume surged in 2024, user quality across chains has declined. This reflects the influx of new users with lower current engagement, who are expected to gradually explore the diverse use cases offered by Web3.
Key findings include:
**Base:** One of the typical success stories of user growth in 2024. Despite its lower user quality score, this does not indicate poor overall performance. Rather, it suggests that its large new user base is currently concentrated in fewer on-chain activities. With efforts to guide these users into more diversified ecosystem activities, Base still has significant room for improvement.
**ETH:** User quality dropped significantly ahead of the launch of several SEC-approved ETH ETFs in the U.S. This suggests that while institutional funds drive rapid wallet growth, the lack of sufficient incentive mechanisms and easy participation pathways (such as protocol governance) may hinder the depth of user engagement.
**Blast:** Successfully attracted users to actively participate in a range of activities across multiple chains during its initial launch, showcasing its strong ability to incentivize gamified activities. Although Blast’s user growth slowed in Q4 2024, its remaining users remain active in several areas, indicating that the chain has the potential for long-term development beyond its initial hype.
