Polygon Comes Close to Matching Ethereum in User Acquisition
According to blockchain analytics firm Flipside, Polygon (MATIC) acquired an impressive 15.24 million users in 2023, falling just shy of Ethereum’s 15.4 million users. Flipside defined an “acquired” user as someone who conducted at least two transactions on a specific blockchain, with at least one transaction occurring in 2023.
Polygon Exceeded Ethereum in User Acquisition in First Half
Polygon took the lead in user acquisition during the first half of the year but was eventually surpassed by Ethereum in the second half. The report highlighted Polygon’s strong start with 2.8 million acquired users in January alone, accounting for over 40% of its total acquired users for the year.
Base Saw a Decline in User Base after Strong Growth
Base experienced a decline in user volume towards the end of 2023, attributed to renewed enthusiasm for more established chains. However, Flipside believes Base’s user growth could benefit from the next bull run, especially considering Coinbase’s efforts to serve as a gateway for new users in the crypto space.
Hot Take: User Acquisition Trends and Potential Factors
Flipside observed that user acquisition across various blockchains peaked in May before gradually declining. The collapse of Silicon Valley Bank in March may have led to a loss of confidence in centralized entities and prompted a shift towards decentralized custody alternatives. Base’s decline could be due to increased interest in established chains with robust app ecosystems. As for Arbitrum, its market share among layer 2 networks is dominant, and it has seen consistent growth and increased Total Value Locked (TVL). The upcoming Ethereum Dencun upgrade is expected to benefit layer 2 solutions like Arbitrum by reducing transaction costs and improving network capacity.
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