Blockchain networks are bleeding casual users, with four of the five low-engagement accounts that go inactive within three months, according to a Flipside study.
A recent study reveals a harsh truth about blockchain ecosystems: most users lose interest quickly. Data from Flipside, which analyzed user behavior on networks such as Solana, Ethereum, Arbitrum and Avalanche, show that user retention is extremely low. The majority of users disappear within a few months, unless they were very active from the start.
Flipside looked carefully at how portfolios behave over time. They sorted users in three categories: low value (scores 0-3), medium value (4-7) and high-quality (8+), based on how much activity they had previously had in chain. Then they checked every month every month for six months, following how many were still active.
The retention -cliff
The data show a clear pattern: the first month is brutal. Users of low value portfolios with little or no previous activity are almost immediately deposed. According to the report, consistently shows the “lowest retention, which falls below 5% after 6 months.” In clear terms: 95 of every 100 of these portfolios have disappeared in six months.
The 6-month retention rates about block chains, segmented by Score Emmer | Source: Flipside
Average value users-ordinary but not powerful user-making it better, but still falls sharply before they stabilize, while users with a high value evaluation slowly decrease and only 5-8% of their number every month.
Some block chains hold users better than others. For example, Ethereum and Avalanche have the strongest retention for high-quality addresses, which means that 35-38% remains active after six months. Solana remains, despite its size, although details behind this gap remain unclear. Newer chains tend to have the steepest drop-offs, which suggests that early growth figures can be misleading.
The metric fall
The report points to a common problem in crypto: Chains Chase Chase Big User Figures, but most of those ‘users’ do not last. Many just continue: AirDrop Hunters, Speculators or Bots. The data makes clear, real, sustainable activity comes from a small fraction of addresses.
“If we zoom in on the storage charts, you can see it extremely clear: only a handful of addresses contribute to a persistent activity or liquidity volume about the most important chains investigated.”
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This creates a dilemma: since block chains want to show fast acceptance, they focus on inflating user racks. But if most of those users disappear, the growth is not really. The report argues that protocols are better off to target high -quality users from the start, even if that means a slower growth of the head.
Retention curves over all analyzed block chains | Source: Flipside
Flipside’s research recommends that blockchain networks are shifting their focus on low value users. Incentives for one -off actions can stimulate short -term statistics, but they cannot be involved in the long term.
“It is a difficult pill to swallow, but the protocols that embrace this reality will perform better than those who waste their stimuli to addresses they will not adopt. The data clearly indicates that focus on quality manual and retention of quality users – instead of blowing up adrestings – the most sustainable path for growth of the ecoSystem.”
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The report suggests that blockchain developers may want to consider thinking more about designing Tokenomics and reward systems that encourage participation in the longer term. Although short -term stimuli can help stimulate the initial activity, they often do not lead to meaningful involvement in time.
According to the data, it seems more effective to create mechanisms that reward consistent involvement, which can help build a more stable and active user base. Giving priority to long -term interaction, instead of one -off actions, can offer a better path to long -term growth.
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Credit : cryptonews.net
