Study Reveals High 90-Day Crypto User Attrition

The study underscores challenges in user retention, affecting blockchain platforms’ activity levels and economic stability.

Study Analysis

Flipside’s analysis reveals significant turnover among blockchain users, with 80% ceasing engagement within 90 days. This trend indicates systemic retention issues for major platforms like Ethereum, Solana, and Avalanche, posing risks to long-term viability.

The study involved analyzing user behavior across various networks. Key actions involved categorizing user activity, revealing that fewer than 5% remain active after six months, exposing a need for enhanced user engagement strategies.

Immediate Impacts

Immediate impacts include declining on-chain activity, which threatens liquidity and network value, crucial for platforms. The retention of high-value wallets on Ethereum and Avalanche contrasts with Solana’s lower figures, pointing to varied ecosystem dynamics.

Financially, dwindling user bases can depress Total Value Locked (TVL), affecting liquidity. Politically, these retention concerns may ignite regulatory scrutiny, while on a social front, developers are urged to simplify onboarding to minimize drop-offs.

Long-term Effects

Long-term effects could reshape the blockchain landscape, necessitating technological innovation to boost user retention. Historical trends indicate that platforms with improved retention might gain competitive advantage, but regulatory changes could further influence these dynamics.

Insights suggest potential market adjustments using historical data. Increased regulation may alter user dynamics, reinforcing the need for adaptable frameworks. Deploying sophisticated user onboarding systems appears pivotal for sustaining growth amid these challenges.

Flipside Study Findings

“The overwhelming majority of casual (low-value) users become inactive within 90 days, with 80% quitting within three months and fewer than 5% remaining after six months.”

Flipside Study