Web3 Adoption Status: Rise and Challenges Coexist

In the fifteen years since the birth of cryptocurrency, the number of global holders has surged to approximately 560 million, with a rise rate far exceeding that of traditional payment networks. However, this only accounts for 6.8% of the global population. In 2023, the number of cryptocurrency holders increased by 33%, reaching 420 million, with 34% aged between 24 and 35.

Asia has performed outstandingly in terms of the number of holders, rising from 268 million to 326.8 million, an increase of 21.8%, demonstrating its importance in shaping the cryptocurrency landscape.

However, the actual number of active users on the chain may be lower than the above data. As of 2024, the total number of monthly active addresses for the top 20 Layer 1 blockchains has just exceeded 75 million. Even when including the most popular Layer 2 solutions (with monthly active addresses slightly below 20 million), the total number of users across all mainstream blockchains is only about 100 million, and may be overstated due to one person having multiple addresses.

The new address metric for Bitcoin shows that the monthly new address rise rate has dropped to 2018 levels, indicating that on-chain activity is shrinking and reflecting a decline in the network's fundamentals.

The approval of the Bitcoin ETF at the beginning of this year may be the main reason for the rise in crypto users. 21% of non-crypto users stated that this approval had a positive impact on their investment decisions.

Nevertheless, 44% of non-crypto users still say they will never buy cryptocurrency, with the main concerns being value instability and lack of government protection.

Speculation remains the main approach in Web3 and cryptocurrencies, but the portfolios of new users who entered after 2021 are generally in a state of loss.

Interestingly, according to a 2023 study, Dogecoin (DOGE) is the third most popular cryptocurrency among crypto investors, a ranking that may not include stablecoins such as USDC and USDT.

Although the friendly attitude of the US government towards cryptocurrencies may affect user growth, "stories" like the thousand-fold rise of Dogecoin might better stimulate the interest of users outside the crypto space. The relationship between the surge in market value and user adoption is akin to the "which came first, the chicken or the egg" question, which is worth pondering.

It can be confirmed that Web3 in 2024 is still in the early stages of development.