Cryptocurrency exchanges are increasingly focused on bringing new users onchain. This is not surprising as going onchain often leads to organic and exponential growth.
For example, Dogecoin (DOGE) recently experienced a surge in user engagement. According to CryptoQuant data, Dogecoin saw a 400% increase in active user addresses this week.
This indicates that more users are utilizing the Dogecoin network and suggests an uptick in development activity, despite recent price fluctuations.
Crypto Exchanges Focus On Onchain Growth
Gemini, a United States-based cryptocurrency exchange, recently hired a “head of onchain” to onboard new users and ensure their continued engagement. Eric Kuhn, the head of onchain at Gemini, explained that onchain engagement serves as a way to build bridges to the Web3 ecosystem.
Gemini allows users to deposit and withdraw stablecoins and native tokens across any blockchain network. Kuhn stated, “We think there are really exciting things happening onchain. We are big fans of solving real challenges using onchain, including participating in prediction markets and cross-border payments.”
Coinbase, another cryptocurrency exchange, is also aiming to drive consistent engagement through onchain activations. Gary Sun, the vice president of marketing at Coinbase, stated that going onchain opens up new opportunities for users to connect in ways that were never possible before.
Coinbase Brings Onchain Activations to Warriors Night
Coinbase partnered with the Golden State Warriors, San Francisco’s official basketball team, last October to help fans connect with athletes. Through onchain partnerships and activations, Coinbase aims to make crypto easy for everyone, including sports fans who may not have considered going onchain before.
According to Coinbase research, basketball fans are more likely to own or be curious about cryptocurrency adoption. By leveraging onchain experiences, Coinbase is creating new opportunities for fans to engage, own, and be part of something bigger.
Why Onchain Is Important
Onchain efforts are critical for user growth because they not only attract users but also keep them interested daily. Blockchains should be enjoyable to use and bring value to everyone, making onchain critical for earning adoption.
Bringing users onchain does not necessarily have to involve incentives. Grasmick, a senior infrastructure engineer at Parity Technologies, emphasized that true engagement occurs when users genuinely enjoy using the chain and keep coming back.
Onchain Growth Drives Business Revenue
Businesses with revenue depend on getting their users onchain. Mythos, a non-fungible token (NFT) gaming chain supported by Mythical Games, drives user engagement through sports partnerships and other activities where users may not even realize a blockchain network is involved.
Mythos’s partnership with FIFA Rivals, a free-to-play soccer game, is an example of how non-crypto-native and crypto-native gaming audiences can be brought onchain to enhance the user experience and support businesses.
The Onchain Revolution
This year is expected to be important for bringing users onchain, especially with the emergence of more Layer-2 (L2) networks. Building for the long-term and fostering strong communities are crucial for the success of protocols, chains, and decentralized applications (Dapps).
Coinbase has plans to continue bringing users onchain through partnerships in various sports, including soccer, motorsports, and esports.
Challenges to Consider
The user onboarding experience remains a challenge when it comes to going onchain, especially considering the liquidity fragmentation and the multitude of different chains. Engaging users and creating an experience that is compelling enough to attract new users to go onchain is a significant challenge.
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