In 2023, Polygon, a Layer-2 scaling network for Ethereum, came close to rivaling Ethereum in crypto user acquisition, as per data from blockchain analytics firm Flipside.
The gap between Polygon and Ethereum was narrow, with Polygon gaining an impressive 15.24 million users compared to Ethereum’s 15.4 million.
NEW: Polygon acquired the second highest number of users in 2023, only behind Ethereum.
— Today In Polygon (@TodayInPolygon) January 26, 2024
Flipside defines an acquired user as someone who has completed at least two transactions on a specific blockchain, with at least one occurring in 2023.
Interestingly, Polygon’s user acquisition peaked in the first half of 2023, though Ethereum surpassed Polygon in the latter half of the year.
Polygon Leads The Way With Over 2.8 Million New Users, Over 40% Increase
January saw Polygon leading the way with 2.8 million new users, representing over 40% of all new users added to the network throughout the year.
Despite a consistent decline in monthly user acquisition rates, Polygon outperformed many other networks.
Here are a few surprises we discovered:
– Super users (100+ txs) bought more NFTs than they sold
– 85% of wallets have only transacted on a single chain, but this is lower than in previous years
— Flipside 📊 (@flipsidecrypto) January 25, 2024
Bitcoin, with 10.65 million new users, secured the third position, while Solana and Arbitrum rounded out the top five.
Despite Ethereum’s longstanding dominance, Polygon’s impressive performance signals a growing interest and adoption of Layer-2 scaling solutions within the crypto community.
The significant uptick in user acquisition for Polygon underscores its appeal as a scalable and efficient platform for decentralized applications (DApps) and transactions.
As the crypto landscape continues to evolve, the competition among blockchain networks intensifies, with each vying to attract and retain users in a rapidly expanding ecosystem.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.