Polygon, a Layer-2 scaling solution, almost matched Ethereum’s user acquisition rate in 2023. Blockchain analytics firm Flipside reported that the crypto community is experiencing a wider movement and shift in users than before.
Quick Take:
- Polygon nearly matches Ethereum’s user acquisition in 2023, securing 15.24 million users.
- Flipside’s report shows diverse blockchain adoption beyond Ethereum.
- Users continue to explore alternative blockchains, drawn by their unique offerings and applications.
Polygon witnessed substantial user base growth, securing 15.24 million acquired users in 2023. This impressive figure positions Polygon just shy of Ethereum’s 15.4 million users, marking a dynamic shift in the crypto landscape.
As per the report,
“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. 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.”
The battle for user acquisition underscores the increasing exploration and acceptance of blockchains other than Ethereum. It is a good sign for the overall crypto industry, as protocols have a chance to gain more users by polishing their services.
Flipside Notices a Shift in User Preferences
Flipside’s report defines ‘acquired users’ as those who engage in at least two transactions on a specific blockchain. At least one of them should be from 2023.
Ethereum is the old horse in the crypto sphere and has always attracted many users. It narrowly surpassed Polygon in acquired users, concluding the year with 15.40 million users.
The competition between Polygon and Ethereum signifies a notable shift in user preferences. Despite Ethereum’s leadership in the NFT space, Polygon has made a name for itself by offering a diverse range of applications that extend beyond NFTs.
Polygon’s versatility proves to be a key driver for users. It attracts a new wave of blockchain enthusiasts seeking unique features and advantages.
The report suggests users explore and embrace alternative blockchains. Platforms that offer diverse applications and advantages contribute to this evolving landscape. Therefore, they are challenging Ethereum’s traditional dominance.
Polygon Leads While Bitcoin, Solana, and Arbitrum Follow
Bitcoin secures the third position in user acquisition with 10.65 million acquired users. It shows the blockchain’s relevance and significance in the crypto space.
Flipside’s tracked blockchain rankings round out the top five with Solana and Arbitrum. The competitive landscape among these platforms showcases the evolving dynamics of user adoption.
The eight tracked blockchains, including Optimism, Avalanche, and Base, recorded 62 million acquired users. Flipside notes that user acquisition peaked in May before gradually declining.
Base, launched in August 2023, displayed robust performance initially, but user volume tapered off towards the end of the year. Flipside suggests that renewed enthusiasm for more established chains with diverse app ecosystems may have influenced Base’s user growth decline.
The report emphasizes the influence of external factors. It includes the collapse of Silicon Valley Bank in March, potentially triggering a shift toward decentralized custody alternatives.
The race for user acquisition in 2023 reveals a dynamic crypto landscape where platforms like Polygon challenge the dominance of Ethereum. Innovation and competition will define the future of the crypto community in the face of evolving dynamics among top-performing blockchains.
