Coinbase’s Base Network Gains 1.56 Million Users Monthly in 2024
Flipsight's latest report indicates that Coinbase's Layer-2 blockchain network Base has achieved significant user growth, averaging 1.56 million new users in 2024 and surpassing Ethereum. In October, the Base network added 13.7 million users, making it the fastest-growing chain.
While Ethereum maintains steady user acquisition dominance, Base's growth is notable. The Polygon network also expanded its user base through non-DeFi activities. Conversely, despite Bitcoin's price exceeding $100,000, its blockchain experienced slow growth in new user onboarding.
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Coinbase's Base Performance Compared to Ethereum
Base attracted 15.1 million super users, individuals with over 100 transactions, outperforming both Ethereum and Polygon. This reflects strong user engagement on Base. Polygon has maintained high transaction volumes by diversifying into gaming and non-financial sectors.
In the decentralized exchange (DEX) market, Ethereum-based Uniswap accounted for 91.3% of user activity on Base. Trader Joe remains a leader on Avalanche due to features like Auto-Pools and multi-chain capabilities.
This trend illustrates the consolidation of DEX activity among major players. Newer chains face challenges in balancing innovation with user retention, as seen with Aleo's promising growth but struggles in maintaining engagement. Base has emerged as a model for scaling user engagement through strategic features and partnerships.
Institutional Confidence Amid Regulatory Developments
The report highlights that regulatory clarity has driven institutional adoption of digital assets in 2024. The EU’s Markets in Crypto-assets Regulation (MiCA) has increased institutional confidence, leading to ETF launches and steady user growth across various blockchain networks.
As the crypto market evolves, trends such as GameFi and AI integration are expected to accelerate adoption by addressing scalability and data management challenges. Flipsight 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.”
Flipsight reported that 2024 was crucial for the crypto industry, with legacy platforms competing against emerging ones. Key factors for growth in 2025 will include balancing innovation, user retention, and adapting to regulatory changes.