In the first quarter of 2024, Ethereum and its Layer 2 scaling solution, Polygon, emerged as the top contenders in terms of attracting new users within the blockchain space. A recent report by Flipside highlighted the significant growth in user adoption for these platforms compared to other EVM chains. This analysis sheds light on the key findings and trends observed in the report.
Ethereum boasted an impressive 13.4 million new users, closely followed by Polygon with 12.3 million. Together, these platforms captured around 70% of all new users across observed chains as of March 27. The dominance of Ethereum and Polygon can be attributed to their extensive history and established presence within the blockchain ecosystem. Despite this, both platforms experienced relatively moderate growth rates, with Ethereum witnessing a 298.3% increase and Polygon a 359.7% increase in new user volume between January and March 2024.
The report highlighted DeFi as the primary catalyst for user expansion across various chains in 2024. Ethereum led the pack with a cumulative trade volume of $1 billion, with the busiest trading day recorded on March 5, exceeding $428 million in transactions. March emerged as the most active trading period across all observed chains, indicating the significant role of DeFi in driving user engagement and transaction volumes.
Despite lagging behind Ethereum and Polygon in acquiring new users, Arbitrum secured a strong second position in terms of new user trading volume, accumulating $9.5 billion since the beginning of the year. The platform’s performance was attributed to its focus on NFT trading activities, with a daily peak of $229,000 in mid-February. However, Polygon outstripped Arbitrum in terms of NFT trading volume, reaching a daily high of $6.3 million in early January.
The analysis revealed mixed patterns in new user engagement in NFT trading activities across different chains. While Ethereum and Base witnessed a steady rise in NFT trading volumes, Polygon experienced a decline in activity since the start of the year. The report noted that NFT trading volumes have fluctuated week to week on most other chains, indicating greater volatility in user behavior in this segment compared to DeFi.
Ethereum and Polygon emerged as frontrunners in attracting new users and driving transaction volumes in the first quarter of 2024. While DeFi remained a key driver of user engagement, NFT trading activities displayed varying patterns across different chains. The findings of the report underscore the evolving dynamics of the blockchain ecosystem and the importance of user adoption strategies for platforms seeking to establish a foothold in the market.
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