This Community Had as Many Customers as Ethereum in 2023: Flipside Data

Polygon, a layer-2 scaling community, virtually matched Ethereum’s user base in 2023, as reported by blockchain analytics firm Flipside.

Polygon obtained 15.24 million users that year, coming shut to Ethereum’s 15.4 million, with a distinction of around 160,000 wallets.

Polygon Topped Person Acquisition in First Half of 2023

Flipside defines an “obtained” user as somebody who engaged in on the least two transactions on a explicit blockchain, with on the least one happening in 2023. At some stage within the principle half of 2023, Polygon led the user acquisition race nonetheless was as soon as later surpassed by Ethereum, declaring its lead all over the latter phase of the year.

Is the bull is if fact be told here? How can we uncover?

Data.

Sentiment isn’t the most convenient part that’s changed neutral as of late. In maintaining with the guidelines, user conduct is shifting — and with it, crypto markets.

We duvet all of it in The Onchain Crypto Person Legend 🧵📊👇 pic.twitter.com/IsclNOZhJk

— Flipside 📊 (@flipsidecrypto) January 25, 2024

In January, Polygon completed a terrific milestone with 2.8 million obtained users, constituting over 40% of the total number for 2023, essentially based on Flipside. Ethereum secured the lead for the complete year, while Bitcoin claimed the third space with 10.65 million obtained users. Solana and Arbitrum completed the tip 5 rankings.

The aggregated data from the eight tracked blockchains, including Optimism (OP), Avalanche (AVAX), and Negative (BASE), printed a filled with 62 million obtained users. Flipside seen that user acquisition peaked in Could perhaps nonetheless gradually declined later on.

Seriously, Flipside urged a connection between the surge in obtained users beginning in March and the collapse of Silicon Valley Bank. The tournament potentially eroded self belief in centralized entities, prompting a shift in opposition to decentralized custody decisions.

Negative, launched in August, additionally exhibited a convincing originate, nonetheless its user volume dwindled within the final months of 2023. Flipside speculated that the waning user notify for Negative could perhaps merely be attributed to renewed enthusiasm for added established chains in opposition to the tip of the year.

Flipside Predicts Developments for 2024

In its predictions for future traits, Flipside seen a decline in NFT-connected activities and a shift in opposition to decentralized finance (DeFi) activities all over 2023. Staring at for the upcoming cycle, Flipside urged that DeFi activities would continue to dominate, surpassing the prominence of NFT shopping and selling.

Namely, it highlighted decentralized alternate (DEX) shopping and selling and yield farming as ongoing predominant beneficial properties while additionally forecasting the emergence of most recent DeFi beneficial properties like the Ethereum restaking protocol Eigenlayer.

In maintaining with Flipside, user conduct in 2024 is expected to involve increased interaction with a pair of blockchain networks, even when nearly all users will likely persist with partaking with a single chain.

The prediction extra emphasised a increasing pattern of user interaction with Layer 2 networks within the arrival year.

Despite being a minority in 2023, users with greater than one blockchain predominantly interacted with Layer 2s. Flipside speculated that rising transaction costs all over the following crypto market bull urge could perhaps lead Layer 2 networks to lower their costs for halt users competitively, potentially driving increased ardour in connected governance tokens.