Blockchain analytics firm Flipside has reported that Polygon, an Ethereum scaling solution, came close to matching Ethereum’s user base in 2023, with both platforms boasting over 15 million acquired users each.
Bitcoin, on the other hand, trailed behind with 10.65 million users. This data sheds light on the growing popularity of Layer-2 scaling networks and their impact on the cryptocurrency landscape.
Polygon user acquisition rankings
Flipside defines an acquired user as someone who has conducted at least two transactions on a particular blockchain, with at least one of those transactions occurring in 2023. In terms of user acquisition, Polygon led the way in the first half of the year, amassing an impressive 15.24 million users by the end of 2023. However, it fell just 160,000 users short of Ethereum’s 15.4 million users by the same measure.
Polygon’s journey in 2023 was marked by remarkable growth, starting with 2.8 million acquired users in January, which accounted for over 40% of the network’s total acquired users. Despite experiencing a consistent decline in monthly user acquisition throughout the year, Polygon continued to compare favorably with other blockchain networks.
On the other hand, Ethereum managed to overtake Polygon in user acquisition during the second half of the year, maintaining its lead. These rankings highlight the blockchain ecosystem’s competitive nature and its evolving dynamics.
Bitcoin’s position
While Bitcoin remains one of the most well-known cryptocurrencies, it ranked third in user acquisition with 10.65 million users. The data suggests that, while substantial, Bitcoin’s appeal and user base have not grown as rapidly as some of the newer blockchain platforms.
Completing the top five in user acquisition rankings were Solana and Arbitrum. Solana, known for its high-speed and low-cost transactions, attracted a significant user base. Meanwhile, Arbitrum, a Layer-2 scaling solution for Ethereum, also managed to secure a notable position.
The eight tracked blockchains, including Optimism, Avalanche, and Base, recorded a cumulative user base of 62 million acquired users. Flipside observed that user acquisition reached its peak in May before gradually declining.
The report suggests that the increase in user acquisition coincided with the collapse of Silicon Valley Bank, possibly causing a shift in confidence from centralized entities to decentralized custody alternatives.
Flipside noted that Base, a blockchain network launched in August 2023, started strong but saw its user volume taper off in the year’s final months. The decline in user growth may have been influenced by renewed enthusiasm for more established blockchain chains that offer a wider range of applications and services. Established networks often have more robust and diverse app ecosystems, making them more attractive to users.
The report speculates that Base’s user growth could benefit from the next cryptocurrency bull run. This optimism is based on Coinbase’s efforts to serve as a gateway for new users into cryptocurrency. As Coinbase continues to expand its services, it may help drive increased adoption of Base and other emerging blockchain networks.
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