- January 28, 2024
- Posted by: [email protected]
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In the ever-evolving realm of cryptocurrency, the year 2023 witnessed a remarkable performance by Polygon (MATIC), a Layer-2 scaling network that came tantalizingly close to matching Ethereum (ETH) in user acquisition. As unveiled by blockchain analytics firm Flipside, Polygon saw an impressive surge, acquiring 15.24 million users throughout the year, a figure only slightly below Ethereum’s 15.4 million users.
Flipside’s methodology for defining “acquired” users considered individuals engaging in at least two transactions on a specific blockchain, with at least one transaction occurring in 2023. Polygon exhibited an early lead in user acquisition during the first half of the year, particularly noteworthy for securing 2.8 million users in January alone, representing over 40% of the network’s total acquired users for the entire year. However, as the year progressed, Ethereum managed to surpass Polygon, maintaining its lead in user acquisition during the latter half.
Despite Polygon’s consistent decline in monthly user acquisition throughout the year, it continued to outshine other networks. Bitcoin claimed the third position with 10.65 million acquired users, followed by Solana and Arbitrum in the top five. The eight tracked blockchains collectively recorded an impressive 62 million acquired users, encompassing platforms like Optimism, Avalanche, and Base. The zenith of user acquisition occurred in May, gradually tapering off in subsequent months.
An intriguing observation made by Flipside highlighted a potential correlation between the surge in acquired users and the March collapse of Silicon Valley Bank. The collapse may have triggered a loss of confidence in centralized entities, prompting a notable shift towards decentralized custody alternatives.
Turning attention to Base, a platform that made its debut in August, Flipside noted a robust initiation but also witnessed a decline in user volume towards the end of 2023. This downward trajectory was ascribed to renewed enthusiasm among users for more established chains boasting robust and diverse app ecosystems. Nevertheless, Flipside remains optimistic about Base’s growth potential, particularly in anticipation of the next bull run, fueled by Coinbase’s endeavors to act as a gateway for new users entering the crypto space.
In a broader context, Arbitrum, an Ethereum-based Layer-2 network, emerged as a dominant force with a 49.17% market share among Layer-2 networks. This substantial lead positioned it well ahead of Optimism Mainnet, which held a 28.85% market share. Arbitrum also showcased consistent growth in its Total Value Locked (TVL), surging by approximately 50% from $1.66 billion in October to its current valuation of $2.51 billion, as reported by DeFi tracking site DefiLlama.
Looking ahead, the forthcoming Ethereum Dencun upgrade, incorporating changes proposed by EIP-4844, holds the promise of reducing rollup transaction costs. This development is anticipated to benefit Layer-2 solutions like Arbitrum by lowering gas fees and enhancing overall network capacity, signaling potential positive shifts in the broader landscape of cryptocurrency.
