Layer-2 scaling network Polygon almost “acquired” as many crypto users as Ethereum in 2023, according to blockchain analytics firm Flipside.
Polygon, an Ethereum scaling solution, boasted 15.24 million acquired users in 2023, approximately 160,000 short of Ethereum’s 15.4 million.
Flipside defined an “acquired” user as one who conducted at least two transactions on a particular blockchain, with at least one taking place in 2023.
Interestingly, Polygon led the tally for the first half of 2023 but was ultimately overtaken by Ethereum, which kept the lead throughout the second half of the year.
Is the bull is really here? How can we tell?
— Flipside (@flipsidecrypto) January 25, 2024
Data.
Sentiment isn't the only thing that's changed lately. According to the data, user behavior is shifting — and with it, crypto markets.
We cover it all in The Onchain Crypto User Report pic.twitter.com/IsclNOZhJk
“Polygon kicked off the year with an impressive 2.8MM acquired users in January — accounting for over 40% of the network’s total acquired users in 2023,” Flipside explained.
“From there, Polygon experienced the most consistent decline in monthly user acquisition over the year in relative terms, but still compared favorably with more other networks.”
Bitcoin came in third with 10.65 million acquired users, while Solana and Arbitrum rounded out the top five.
A total of 62 million acquired users were recorded from the eight blockchains tracked, which also included Optimism (OP), Avalanche (AVAX) and Base (BASE), and Flipside noted that overall, user acquisition peaked in May before acquired users gradually declined.
"The acquired user increase began in March, coinciding with the collapse of Silicon Valley Bank, which may have shaken confidence in centralized entities and ignited a flee to decentralized custody alternatives," wrote the firm.
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Flipside said Base started “strong” following its launch in August, but its user volume “tampered off” in the final months of 2023.
“Renewed enthusiasm across more established chains near the end of the year may have contributed to the decline in Base’s user growth, given that these networks had more robust, diverse app ecosystems to engage with,” the firm explained.
“However the next bull run may bode well for Base’s user growth, given Coinbase’s efforts to serve as a crypto gateway for new users.”
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