Polygon, a layer-2 scaling network, almost matched Ethereum’s user base in 2023, as reported by blockchain analytics firm Flipside.
Polygon obtained 15.24 million users that year, coming close to Ethereum’s 15.4 million, with a distinction of around 160,000 wallets.
Polygon Topped User Acquisition in First Half of 2023
Flipside specifies an “gotten” user as somebody who took part in a minimum of 2 deals on a particular blockchain, with a minimum of one happening in 2023. Throughout the very first half of 2023, Polygon led the user acquisition race however was later on gone beyond by Ethereum, preserving its lead throughout the latter part of the year.
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Information.
Belief isn’t the only thing that’s altered recently. According to the information, user habits is moving– and with it, crypto markets.
We cover everything in The Onchain Crypto User Report pic.twitter.com/IsclNOZhJk
— Flipside (@flipsidecrypto) January 25, 2024
In January, Polygon accomplished an amazing turning point with 2.8 million obtained users, making up over 40% of the overall number for 2023, according to Flipside. Ethereum protected the lead for the whole year, while Bitcoin declared the 3rd position with 10.65 million gotten users. Solana and Arbitrum finished the leading 5 rankings.
The aggregated information from the 8 tracked blockchains, consisting of Optimism (OP), Avalanche (AVAX), and Base (BASE), exposed an overall of 62 million obtained users. Flipside observed that user acquisition peaked in May however slowly decreased later.
Significantly, Flipside recommended a connection in between the rise in gotten users beginning in March and the collapse of Silicon Valley Bank. The occasion possibly deteriorated self-confidence in central entities, triggering a shift towards decentralized custody options.
Base, introduced in August, likewise displayed a strong start, however its user volume diminished in the last months of 2023. Flipside hypothesized that the subsiding user development for Base may be credited to restored interest for more developed chains towards completion of the year.
Flipside Predicts Trends for 2024
In its forecasts for future patterns, Flipside observed a decrease in NFT-related activities and a shift towards decentralized financing (DeFi) activities throughout 2023. Preparing for the approaching cycle, Flipside recommended that DeFi activities would continue to control, exceeding the prominence of NFT trading.
Particularly, it highlighted decentralized exchange (DEX) trading and yield farming as continuous primary applications while likewise anticipating the introduction of brand-new DeFi applications like the Ethereum restaking procedure Eigenlayer.
According to Flipside, user habits in 2024 is anticipated to include increased interaction with several blockchain networks, although many users will likely adhere to engaging with a single chain.
The forecast even more highlighted a growing pattern of user interaction with Layer 2 networks in the coming year.
In spite of being a minority in 2023, users with more than one blockchain primarily communicated with Layer twos. Flipside hypothesized that increasing deal charges throughout the next crypto market bull run might lead Layer 2 networks to decrease their expenses for end users competitively, possibly driving increased interest in associated governance tokens.
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