- Bitcoin ranked third in user growth, while the total acquired users from eight major blockchains exceeded 62 million, as reported by Flipside.
A Tight Race in Blockchain User Acquisition
The competitive landscape of blockchain technology witnessed a significant shift in 2023, as highlighted by a recent report from blockchain analytics firm Flipside. This report puts a spotlight on the user acquisition battle between Ethereum and its layer-2 scaling network, Polygon.
Is the bull is really here? How can we tell?
Sentiment isn't the only thing that's changed lately. According to the data, user behavior is shifting — and with it, crypto markets.
We cover it all in The Onchain Crypto User Report 🧵📊👇 pic.twitter.com/IsclNOZhJk
— Flipside 📊 (@flipsidecrypto) January 25, 2024
Polygon’s Impressive Growth
Polygon, renowned as an Ethereum scaling solution, showcased a remarkable performance in user growth last year. The network successfully acquired 15.24 million users, just a fraction behind Ethereum’s 15.4 million. This near parity in user numbers is a testament to Polygon’s growing influence in the blockchain ecosystem.
Flipside defines an ‘acquired user’ as someone who has conducted at least two transactions on a blockchain, with one of these transactions occurring in 2023. This definition underscores active engagement rather than mere account creation.
Ethereum vs. Polygon: A Year of Competition
The year 2023 began with Polygon leading the race, acquiring a staggering 2.8 million users in January alone, which accounted for over 40% of its total user growth for the year. However, Ethereum regained momentum in the second half of the year, ultimately surpassing Polygon in the total number of new users.
Understanding the Broader Context
Shifting User Preferences
The report notes that user acquisition peaked in May and then gradually declined. This trend coincided with external factors such as the collapse of Silicon Valley Bank, possibly influencing a shift towards decentralized custody solutions. The report also observed that renewed interest in more established chains towards the end of the year impacted the growth of newer platforms like Base.
Emerging Trends and Future Projections
As the blockchain sector continues to evolve, platforms like Polygon and Ethereum are at the forefront, competing not just for technological superiority but also for a larger user base. The close competition between these two giants in 2023 sets the stage for an intriguing dynamic as the industry progresses, with implications for the future development and adoption of blockchain technology.