Cryptocurrency Exchanges Prioritize Onchain Engagement for User Growth

Cryptocurrency exchanges are increasingly focusing on innovative strategies to bring users onchain, blending financial services with everyday cultural elements. This shift is driven by the recognition that onchain engagement can lead to organic, exponential growth. For instance, Dogecoin recently experienced a significant surge in user engagement, with a notable increase in active user addresses. This trend indicates that more users are leveraging the Dogecoin network, despite recent price fluctuations, suggesting a rise in development activity.

United States-based cryptocurrency exchange Gemini has taken a proactive approach by hiring a "head of onchain" to facilitate the onboarding of new users and retain their engagement. Eric Kuhn, the head of onchain at Gemini, emphasized that onchain engagement serves as a bridge to the Web3 ecosystem. Gemini allows users to deposit and withdraw stablecoins and native tokens across various blockchain networks, highlighting the company's commitment to solving real-world challenges through onchain solutions, such as prediction markets and cross-border payments.

Similarly, Coinbase is leveraging onchain activations to drive consistent user engagement. Gary Sun, vice president of marketing at Coinbase, noted that going onchain opens up new opportunities for users to connect in ways that were previously impossible. Coinbase's partnership with the Golden State Warriors, for example, allowed fans to connect with athletes through onchain activations. These activations included claiming digital collectibles, unlocking exclusive content, and participating in blockchain-powered activities in person. Coinbase's research indicates that basketball fans are more likely to own or be curious about cryptocurrency adoption, making sports partnerships a strategic move to introduce new users to the onchain experience.

Erin Grasmick, a senior infrastructure engineer at Web3 engineering firm Parity Technologies, highlighted the importance of onchain engagement for user retention. She noted that engagement is not just about acquiring users but also about keeping them interested daily. Grasmick emphasized that onchain experiences should be enjoyable and valuable, making it easier to retain users. She also pointed out that businesses with revenue depend on getting their users onchain, as seen with Mythos, an NFT gaming chain that drives user engagement through sports partnerships and other activities where users may not even realize they are interacting with a blockchain network.

Mythos, supported by blockchain gaming studio Mythical Games, is set to launch FIFA Rivals, a free-to-play soccer game on iOS and Android, powered by the Mythos blockchain and secured by the Polkadot network. This game will allow gamers to manage their own soccer clubs and compete against other players in real-time, showcasing how onchain experiences can enhance user engagement and support businesses.

Grasmick believes that this year will be crucial for bringing users onchain, especially with the emergence of more Layer-2 (L2) networks. She emphasized the importance of building for the long term and fostering strong communities that can evangelize and grow the user base. Coinbase, for instance, has future plans to continue bringing users onchain through partnerships with various sports teams and esports organizations, such as Borussia Dortmund, Aston Martin Aramco, and Team Liquid.

However, Grasmick also pointed out the challenges in the user onboarding experience, particularly the liquidity fragmentation across different chains. She believes that creating engaging experiences that attract new users to the onchain environment is a key goal for businesses. Despite these challenges, the focus on onchain growth and engagement remains a priority for cryptocurrency exchanges, as they continue to explore new ways to bring users into the digital finance ecosystem.