Crypto Retention Data Reveals Why Platforms Struggle to Keep Users
Retaining active users beyond the first month remains a key challenge for crypto platforms, as shown by recent data from prediction markets like Polymarket. Analytics from Dune and Keyrock, sampling 275 crypto projects, found that Polymarket’s user retention rates exceeded over 85% of other protocols, highlighting generally low sustained usage across the sector. Liquidity and growth in crypto markets rely on frequent user participation, making weak retention a concern. Prediction markets, which engage users with recurring, real-world events, create more habitual and high-frequency activity, reducing dependence on incentives and short-term speculation. This event-driven model has led major crypto entities—including Coinbase, Gemini, Phantom, and Bitnomial Clearinghouse—to launch or integrate prediction market features. Recent moves include Coinbase’s plans for tokenized equities and prediction markets, Phantom’s integration of Kalshi into its app, Bitnomial’s CFTC approval to launch prediction markets, and Gemini’s nationwide rollout of an in-house prediction market. These efforts reflect a broader shift as crypto platforms seek to improve user engagement and drive consistent, repeated activity beyond initial sign-ups.
