Blockchain is becoming a boon for both traditional as well crypto markets, but a recent report mentioned astonishing facts about blockchain usage, arguing that the majority of users lose interest quickly.
According to a report by Flipside in which analyzed the behavior of users on different blockchains including Ethereum, Avalanche, Arbitrum, and Solana, the users’ retention rate is quite low.
It is worth noting that the majority of users disappear within months unless they were already highly active from the start. Also, Flipside analysed the behavior of wallets over time and has categorised them in three different ranges: (i) 0- 3 low value, (ii) 4- 7 medium value, and 8+ are determined as high value.
The measuring scale by Flipside is made after analysing how many activities they have done in the past, followed by checking each group once a month for two quarters, which helps them to figure out how many of them are still active.
Key findings of Flipside on blockchain user retention
The report by Flipside noted that Ethereum and Avalanche blockchain has the highest high value retention rate, with 35 to 38% of active users remaining engaged over time.
Despite being one of the most prominent blockchains, Solana has lower high-value user retention compared to other smaller networks, yet new blockchains have faced a faster loss in users and activities.
On the other hand, fast-growing chains might be increasing the number of addresses without sustaining significant interaction.
Blockchain industry size and other metrics
According to data from MarketsandMarkets, the global blockchain market size in 2023 was $7.5 billion. In the year 2024, it reached $9.3 billion and is projected to reach $44.29 billion by 2025.
The market is expected to grow at a CAGR of 49.7% between 2025 to 2032 and is expected to reach $746.41 billion by 2032. Yet another data source says that the blockchain is expected to contribute $1.76 trillion to the global GDP by 2030, with the potential to govern 10- 20% of global economic infrastructure.
In 2023, an emerging pattern of blockchain usage was observed, with a 28% surge in blockchain usage in healthcare sectors and a 22% surge in the usage of digital identity solutions.
Crypto market price updates
Until publishing, the crypto market cap was $3.43 trillion with a slight decline of 0.18%, and the trading volume has reached $130 billion.
At the same the crypto fear and greed index was at 68, indicating greed in the market sentiment. Similarly, Bitcoin has been exchanging hands at $108,478 with a slight loss of 0.49%, and the market cap is $2.15 trillion with a decline of 0.51%.
According to CoinMarketCap, the intraday gainers list has been topped by SPX6900, followed by Toncoin, Ethereum Name Service, Lido DAO, Zcash, Pepe, and Sky.
The losers in the intraday time frame are Fartcoin, P, Jupiter, Bittensor, XCD Network, Raydium, Virtual Protocol, and Hyperliquid.
