Only 7% of users who first interact with Ethereum will continue to do so even after a year, latest Token Terminal data on October 9 shows. This statistic means that roughly 93% of users will stop using the platform to transfer tokens or deploy smart contracts within a year. This suggests that the platform (or its underlying technology) is still perceived to be complex, or users might not be too eager to engage and interact.
Ethereum Is Struggling With User Retention
Despite its clear lead and popularity, what could disincentivize users from using Ethereum is not immediately clear. Token Terminal, an analytics platform, posted a graph showing fast-falling interest over time based on data collected between August 2015 and October 2023.
Ethereum first launched in July 2015. However, its developers have continuously enhanced the platform, making it more performant, specifically emphasizing improving scalability.
The ledger is the first to allow users to launch decentralized applications (dapps). These protocols are immutable and powered by smart contracts in a generally secure environment guided by globally distributed validators.
The distribution and decentralization of validators mean protocols launching on Ethereum, such as Uniswap, are censorship-resistant. Ethereum is popular because…
