What the Key Metrics for Onchain Activity Say About SOL, ETH and Other Chains in 2025
In a sea of noise, the real winners of Web3 will be those who turn raw on-chain data into actionable signals for sustainable growth.
1. Summary:
The article discusses the importance of focusing on the quality of user engagement and the potential for organic growth in the Web3 space, rather than getting distracted by transaction volumes and token prices. It introduces the concept of creating a “health index” score by combining multiple on-chain metrics to evaluate the depth and quality of user engagement. The text analyzes the on-chain activity of leading chains like Solana, Ethereum, and Axelar in 2024, highlighting insights on user behavior and the implications for these chains going into 2025.
2. Key Insights:
– Quality of user engagement is crucial in the Web3 space, and traditional metrics like token prices and transaction volumes may not provide a clear picture of a chain’s success.
– Creating a “health index” score by aggregating multiple on-chain metrics can help identify which chains are thriving and positioned for long-term growth.
– Solana attracted high-quality users initially but has seen a decline in user engagement quality, posing challenges and opportunities for the chain in 2025.
– Ethereum’s user score remained low and stable in the first half of 2024, indicating potential issues with broader ecosystem participation despite bullish developments.
– Axelar had the most active users engaged in diverse on-chain activities relative to its total user base, suggesting potential for growth and the importance of looking beyond market cap and trading volume.
– Scoring systems need to be tailored to capture the specific user actions that define success for different chains, especially as networks evolve into more specialized ecosystems.
– The winners in Web3 in 2025 will be those who prioritize user quality and utilize multivariate scoring methods to drive meaningful insights and value creation.
Overall, the article underlines the necessity of shifting towards data-backed strategies and quality user engagement to unlock the full potential of Web3 in the coming years.
