Polygon Nearly Matches Ethereum in Crypto User Acquisition in 2023
Layer-2 scaling community Polygon (MATIC) got here near matching Ethereum (ETH) by way of crypto person acquisition in 2023.
In response to blockchain analytics firm Flipside, Polygon acquired a powerful 15.24 million customers in the course of the 12 months, falling simply shy of Ethereum’s 15.4 million customers.
To outline an “acquired” person, Flipside thought of people who carried out not less than two transactions on a selected blockchain, with not less than one transaction occurring in 2023.
Is the bull is basically right here? How can we inform?
Knowledge.
Sentiment is not the one factor that is modified these days. In response to the information, person habits is shifting — and with it, crypto markets.
We cowl all of it in The Onchain Crypto Person Report 🧵📊👇 pic.twitter.com/IsclNOZhJk
— Flipside 📊 (@flipsidecrypto) January 25, 2024
Polygon Exceeded Ethereum in Person Acquisition in First Half
Notably, Polygon took the lead in person acquisition in the course of the first half of the 12 months however was ultimately surpassed by Ethereum, which maintained its lead all through the second half.
Flipside highlighted Polygon’s sturdy begin to the 12 months, with 2.8 million acquired customers in January alone, accounting for over 40% of the community’s whole acquired customers for 2023.
“From there, Polygon skilled essentially the most constant decline in month-to-month person acquisition over the 12 months in relative phrases, however nonetheless in contrast favorably with extra different networks,” the report added.
Whereas Polygon skilled a comparatively constant decline in month-to-month person acquisition all year long, it nonetheless fared favorably in comparison with different networks.
Bitcoin secured the third place with 10.65 million acquired customers, whereas Solana and Arbitrum rounded out the highest 5.
In whole, the eight tracked blockchains recorded 62 million acquired customers, which included Optimism, Avalanche, and Base.
Flipside noticed that person acquisition peaked in Could earlier than regularly declining.
Flipside famous a attainable connection between the rise in acquired customers and the collapse of Silicon Valley Financial institution in March, which can have led to a lack of confidence in centralized entities, prompting a shift in the direction of decentralized custody alternate options.
“The acquired person enhance started in March, coinciding with the collapse of Silicon Valley Financial institution, which can have shaken confidence in centralized entities and ignited a flee to decentralized custody alternate options.”
Base Noticed a Decline in Person Base after Robust Progress
Relating to Base, which launched in August, Flipside said that it loved a robust begin however skilled a really fizzling out in person quantity in the direction of the top of 2023.
The agency attributed this decline to renewed enthusiasm for extra established chains with strong and numerous app ecosystems.
Nonetheless, Flipside believes that Base’s person progress may gain advantage from the following bull run, particularly contemplating Coinbase’s efforts to function a gateway for brand new customers within the crypto area.
As reported, Ethereum-based layer 2 community Arbitrum now has a market share of 49.17% amongst layer 2 networks, far surpassing quantity two on the checklist, Optimism Mainnet, with its 28.85% market share.
The community has additionally seen a constant enhance in its TVL not less than since October final 12 months, rising about 50% from $1.66 billion in October to the present worth of $2.51 billion, information from DeFi monitoring website DefiLlama confirmed.
The upcoming Ethereum Dencun improve, incorporating modifications proposed by EIP-4844, is anticipated to cut back rollup transaction prices, benefiting layer 2 options like Arbitrum by reducing gasoline charges and enhancing community capability.
