During 2023, Polygon and Ethereum both acquired over 15 million new users, making them the top blockchain networks in terms of user acquisition. Bitcoin came in third with 10.65 million new users. According to analysis by Flipside, Polygon is on track to surpass Ethereum’s number of crypto users in the near future.
Polygon, a layer-2 scaling network for Ethereum, recorded 15.24 million acquired users in 2023, just slightly lower than Ethereum’s 15.4 million. An acquired user is defined as someone who has made at least two transactions on a specific blockchain, with at least one in 2023.
Polygon initially led the count in the first half of 2023 but was later surpassed by Ethereum. Despite experiencing a decline in monthly user acquisition throughout the year, Polygon still performed well compared to other networks.
In addition to Polygon and Ethereum, Bitcoin ranked third with 10.65 million acquired users, followed by Solana and Arbitrum in the top five. Overall, the eight tracked blockchains acquired a total of 62 million users.
Flipside noted that the increase in acquired users began in March, coinciding with the collapse of Silicon Valley Bank. This event may have eroded trust in centralized entities and prompted users to seek decentralized custody solutions.
The analysis also highlighted the performance of Base, which had a strong start after its launch but experienced manipulated user volume in subsequent months. The company expects Base’s user growth to improve during an upcoming bullish phase, especially with Coinbase’s efforts to act as a gateway for new users.
In other news, the US SEC has delayed its decision on BlackRock’s request for an Ethereum spot exchange-traded fund (ETF). BlackRock, the largest global fund manager, submitted an application for an Ethereum ETF in November. The SEC expressed its intention to extend the evaluation period.
The enthusiasm for ETFs on cryptocurrencies has grown following the SEC’s approval of spot Bitcoin ETFs. Companies like Ark Invest, Fidelity, and Grayscale are also planning to introduce their own ETFs on Ethereum. Analysts predict a 70% chance of approval for a spot Ethereum ETF by May.
Hot Take: Ethereum and Polygon Lead User Acquisition in 2023
During 2023, both Ethereum and Polygon saw significant growth in user acquisition, surpassing 15 million new users each. This places them at the top of the list among blockchain networks. The analysis by Flipside reveals that Ethereum maintained its lead over Polygon for most of the year after a strong start by Polygon. Bitcoin ranked third in terms of acquired users with over 10 million.
The increase in user acquisition coincided with the collapse of Silicon Valley Bank, which may have driven users towards decentralized custody solutions. Additionally, Base experienced manipulated user volume but is expected to see growth during a bullish phase.
In other news, the US SEC has delayed its decision on BlackRock’s Ethereum ETF application, while other companies plan to introduce their own ETFs on Ethereum. The approval of spot Bitcoin ETFs by the SEC has sparked enthusiasm for these investment vehicles. Analysts predict a high chance of approval for a spot Ethereum ETF in the near future.
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