When discussing how crypto will be considered successful, the number of users is usually considered as the main metric. Having millions of users is impressive, but having a lot of users doesn't necessarily mean that the cryptocurrency and/or blockchain is successful. What really matters is whether users use the network and whether their usage adds any value to it.

Network effects are vital for a system, since its value is determined by how many people use it. In case of money and payment systems, wider adoption makes monetary networks more valuable. According to the BIS, crypto hasn't been able to use this opportunity due to the fact that there are multiple blockchains with activity in each of them, and thus, users/assets can be distributed among various ecosystems. 

Therefore, millions of users can certainly help, but the number isn't the definition of success by itself.

This brings up yet another concern regarding the simple quantification of users. According to research carried out by the BIS, adoption rates of crypto exchanges apps in 95 countries were assessed between 2015 and 2022. This research discovered that rising prices of Bitcoins resulted in the increase of the number of new users. Therefore, it was discovered that a certain part of the increase in the user base of cryptocurrencies was associated with market conditions. 

Such information matters since a person who purchases an asset amid the increase in prices is different from the one who makes use of blockchain technologies on a regular basis for payments, applications, settlement, etc.

Such a concern is relevant when assessing the use of crypto outside the crypto ecosystem. According to BIS research, crypto assets and stablecoins have not found much use for transactions in payment systems outside the crypto ecosystem. 

Therefore, increased user numbers provide information about the growth in interest but cannot be considered sufficient evidence regarding the reason for use and practical value.

However, it does not mean that crypto needs very few users. In some cases, getting many more users can be critically important. Reducing complexity and improving user experience to resemble that of internet applications is one of the key factors in mass adoption according to Ethereum itself.

But success will mean differently in each case depending on the specific aspect of crypto. For example, a payment system can enjoy a high level of adoption because other people and businesses should also accept the same currency. On the other hand, a project for blockchain infrastructure may become valuable due to its usage by developers or applications or its ability to provide secure settlement before mass consumer adoption.

The question that should be asked is “Is crypto used for something real and valuable?” rather than “Does crypto have millions of users?”

Indeed, millions of users can help with strengthening the network effect of crypto. However, sustainability of utility, security, reliability, and adoption are more important than just hitting the numbers of millions of users.