Polygon Almost Matches Ethereum in 2023 User Acquisition, Bitcoin Comes Third, Says Blockchain Analytics Firm Flipside

Polygon Almost Matches Ethereum in 2023 User Acquisition, Bitcoin Comes Third, Says Blockchain Analytics Firm Flipside

Crypto News – In 2023, two prominent blockchains both boasted an impressive user base of over 15 million, while Bitcoin secured the third spot with 10.65 million users, as reported by blockchain analytics firm Flipside.

Notably, the Layer-2 scaling network Polygon came remarkably close to matching Ethereum‘s user acquisition numbers in 2023, according to Flipside’s findings. Polygon, designed as an Ethereum scaling solution, reported a substantial 15.24 million acquired users throughout the year, falling just 160,000 short of Ethereum’s 15.4 million.

Flipside’s definition of an acquired user is one who conducted at least two transactions on a specific blockchain, with at least one of these transactions occurring in the year 2023.

It’s worth mentioning that Polygon initially took the lead in user acquisition during the first half of 2023, but Ethereum eventually reclaimed the top position and maintained it throughout the second half of the year.

Flipside provided insights, explaining that Polygon made a strong start by acquiring an impressive 2.8 million users in January, accounting for over 40% of the network’s total acquired users in 2023. While Polygon experienced a consistent decline in monthly user acquisition throughout the year in relative terms, it still compared favorably with many other blockchain networks.

Bitcoin secured the third position with 10.65 million acquired users, while Solana and Arbitrum rounded out the top five in terms of user acquisition.

In total, the eight tracked blockchains recorded a collective user base of 62 million acquired users, including networks like Optimism, Avalanche, and Base. Flipside noted that user acquisition peaked in May but gradually declined afterward.

Flipside pointed out that the surge in acquired users began in March, coinciding with the collapse of Silicon Valley Bank. This event may have contributed to a loss of confidence in centralized entities, prompting users to explore decentralized custody alternatives.

Regarding Base, Flipside mentioned that the platform showed strong growth after its launch in August 2023 but experienced a slowdown in user volume during the later months of the year. This could be attributed to the renewed enthusiasm among more established blockchain networks toward the end of the year, as these networks offered more robust and diverse app ecosystems for engagement. However, Flipside speculated that Base’s user growth might benefit from the next bull run, especially considering Coinbase’s efforts to serve as a gateway for new crypto users.