Analysis of Web3 Large-Scale Adoption Process: Current Situation, Challenges, and Future Outlook

Recently, large-scale adoption and simplified user experience in the Web3 space have once again become hot topics. Let's take a look at a series of data to understand the current adoption speed of Web3, the challenges it faces, and user preferences.

Since the emergence of Bitcoin in 2009, the number of cryptocurrency holders worldwide has increased to approximately 560 million, growing at a rate far exceeding that of traditional payment networks over the past five years. However, this number only accounts for 6.8% of the global population. According to research, the number of cryptocurrency holders grew by 33% in 2023, reaching 420 million, with 34% of holders aged between 24 and 35.

Asia has shown outstanding performance in the growth of cryptocurrency holders, increasing from 268 million to 326.8 million, a growth rate of 21.8%, highlighting Asia's important role in shaping the cryptocurrency landscape.

However, the figure of 560 million may be somewhat exaggerated, as it includes users holding assets in centralized exchanges or other digital asset custodians. From on-chain metrics, as of 2024, the total number of monthly active addresses for the top 20 Layer 1 blockchains has just surpassed 75 million. Even when adding the monthly active addresses of the most popular Layer 2 solutions (slightly below 20 million), the total number of users across all mainstream chains is only around 100 million, and may be subject to duplication due to one person having multiple addresses.

By observing the number of new Bitcoin addresses, it can be seen that the growth rate of new addresses has slowed to levels seen in 2018, indicating that on-chain activity is shrinking, which is a typical manifestation of a decline in the network's fundamentals.

The main driver for the surge in crypto users may be the approval of Bitcoin ETFs earlier this year. Among non-crypto users, 21% stated that this approval positively impacted their investment decisions.

Despite the increasing acceptance of cryptocurrencies this year, 44% of non-crypto users still say they will never buy cryptocurrencies, primarily due to value instability and lack of government protection.

Clearly, speculation remains the main gameplay of Web3 and cryptocurrency, but the average portfolio performance of new Web3 users entering the market after 2021 often tends to be in a state of loss.

Interestingly, according to a study in 2023, the third most popular cryptocurrency among crypto investors is DOGE, a ranking that may not include stablecoins like USDC and USDT.

Although the recent government stance on cryptocurrencies may affect the increase in crypto users, stories like the "tenfold rise of DOGE" can truly spark interest from outsiders. Should the market cap of the crypto market soar first, or should users adopt it first? This question is as thought-provoking as "which came first, the chicken or the egg."

It can be confirmed that Web3 in 2024 is still in the early stages of development. In the future, how to balance speculation with practical value, and how to enhance security and user experience, will be key factors in driving the mass adoption of Web3.