Discover Why Ethereum & Polygon Are Leading the Way in New User Growth in 2024
Are you curious about which blockchain platforms are attracting the most new users this year? A recent report by Flipside has shed light on the impressive growth of Ethereum and its Layer 2 scaling solution, Polygon, in terms of cumulative new users for EVM chains. Letโs delve into the findings to understand why these two platforms are dominating the market:
Ethereum and Polygon Dominate New User Growth
When it comes to new user acquisition, Ethereum and Polygon have emerged as the frontrunners in 2024, collectively amassing millions of new users since the beginning of the year. Here are some key highlights from the report:
โ Ethereum attracted approximately 13.4 million new users, while Polygon boasted 12.3 million new users
โ Together, these two platforms accounted for around 70% of all new users across observed chains as of March 27
โ Arbitrum followed closely behind with 4.7 million new users during the same period
Why Ethereum and Polygon Stand Out
- Despite their significant growth in new user volume, Ethereum and Polygonโs relative growth rates have placed them in the middle of the pack among all observed chains
- Considering their extensive history and established presence in the market, the dominance of Ethereum and Polygon comes as no surprise
DeFi Emerges as the Main Driver of New User Growth
One of the main drivers behind the surge in new user acquisition on various chains this year has been the growing popularity of decentralized finance (DeFi). Hereโs why DeFi has been instrumental in driving new user growth across EVM chains:
โ DeFi trade volume has witnessed a significant increase since the start of the year, with Ethereum leading the way with $1 billion in trade volume
โ March proved to be the most active trading period for DeFi across all observed chains
โ Despite some fluctuations in trading activity on certain platforms, overall, DeFi activity has shown a consistent upward trend
Ethereum & Polygon Lead in NFT Trading
- While Arbitrum may have lagged behind in new user acquisition, it secured a strong position in terms of new user trading volume, accumulating $9.5 billion since the beginning of 2024
- Polygonโs high NFT trading volume has been a key contributor to its performance, with a daily peak of $6.3 million in early January
New User Growth Shows Varied Results in NFT
When it comes to new user engagement in non-fungible token (NFT) activity, different chains have witnessed varying trends. Hereโs a closer look at the mixed outcomes observed in NFT trading:
โ While Ethereum and Base have seen a steady rise in new user NFT trading activity, Polygon has experienced a decline since the start of the year
โ The USD volume of NFT transactions has remained high on Ethereum, consistently surpassing $1 million daily since January 1st
Key Takeaways for Crypto Enthusiasts
- As an investor or enthusiast in the crypto space, staying informed about the latest trends and developments across different blockchain platforms is crucial for making informed decisions
- Keep an eye on emerging technologies and applications like DeFi and NFTs, as they continue to drive user growth and shape the future of the industry
Hot Take: Stay Ahead of the Curve in the Crypto Market
As we witness the dynamic evolution of the crypto market in 2024, itโs essential for crypto enthusiasts to stay ahead of the curve and adapt to the changing landscape. By understanding the key drivers of new user growth on platforms like Ethereum and Polygon, you can position yourself strategically in the ever-expanding digital asset ecosystem. Embrace innovation, stay informed, and seize the opportunities that the crypto market has to offer!
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.