HomeNewsDecentralized Finance Drives Ethereum and Polygon to the Top in Q1, Flipside...

Decentralized Finance Drives Ethereum and Polygon to the Top in Q1, Flipside Report Shows

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  • Flipside reports a massive growth in Ethereum and Polygon EVM user base.
  • Polygon and Ethereum user volume surges past 657% in the first quarter of the year.

DeFi’s impact in the Ethereum and Polygon ecosystem has been amplified once again, as market data displays new promising developments spotted in the market.

According to a new report published by Flipside, Ethereum and Polygon Blockchain have attracted the most new users across all observed blockchains in the first quarter of the year.

The report further disclosed that both blockchains currently have the upper hand, courtesy of their position as two of the longest-standing networks. Both users secured more than 657% in new user growth this year.

“Given that Ethereum and Polygon have been around longer than most EVM chains, their dominance is not surprising. And taken in terms, Ethereum and Polygon’s new user volume “only” grew 298.3% and 359.7%, respectively, between Jan and March 2024 – which kept them in the middle of the pack across all observed chains.” The report read.

Ethereum leads EVM chains with $12 billion in trading volume

On the flipside, Base, another thriving network, has recorded unprecedented chain growth with 243,000 new users making their way into the network in March alone.

Notably, EVM users are credited for fueling a sustained DeFi surge across all observed chains, particularly with legacy chains like Ethereum and Polygon continuing to record significant growth.

It bears mentioning that the Decun upgrade ushered the EVM ecosystem into a new phase, as market players renewed their interest in layer 2 networks and a continued wave of adoption amidst the bull market.

Among all observed EVM chains, DeFi trading volume has soared since the beginning of the year, with Ethereum leading the pack with a cumulative $12 billion in trading volume.

Additionally, with the leadership of the Ethereum L1 in 2024 over other L2s particularly with trading volume and new users, it has become clearer that L1 still profits from historical dominance.

“The most active trading days took place in March for all observed chains. And while DeFi trading activity on Optimism and Arbitrum have dropped off slightly over the past week, generally speaking, DeFi activity has followed a remarkably consistent, upwards trajectory” the report added.

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